ClassroomSyllabus

School of Management

BSC 401: Interpretation of Financial Statements

5 Credit Hours

Required Resources

Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2011). Financial accounting (6thed.). Hoboken, NJ: John Wiley & Sons.

Whitaker, A. (2010). Research and APA style guide. Bratislava, Slovakia: CityUniversity of Seattle. Available online at or for purchase in the CU Slovakia library.

BSC 401: Interpretation of Financial Statements

Scholastic Honesty City University of Seattle expects each student to do his/her own work. The University has "zero tolerance" for cheating, plagiarism, unauthorized collaboration on assignments and papers, using "notes" or other unauthorized materials and devices during exams, submitting someone else's work as one's own, submitting work previously submitted for another course, or facilitating acts of academic dishonesty by others. Scholastic Honesty policy applies also to online discussions that represent a part of assignments in online courses. Every reference material used in discussion contributions must be cited according to the current Research & APA Style Guide. The penalties are severe! A first offense results in a zero grade for the course; a second offense can result in a zero grade for the course and suspension for one or more quarters; a third offense can result in expulsion from the University. The Policy and Procedures may be found at

In addition to providing your work to the instructor for grading, you must also submit an electronic copy for the City University of Seattle archives (unless the work is specifically exempted by the instructor). You will not receive a grade for particular work until and unless you submit this electronic copy. The procedure for submitting work to the archives is to upload it via the website Files should include the cover page of the work with the student name, instructor name, course name and number, and date. File names should indicate the type of assignment, such as “researchpaper.doc”, “casestudy.doc” or “ thesis.doc” (student name should not be a part of the file name because the system adds it). All files received into the archives are submitted to for plagiarism checking.

Course Description

Interpretation of Financial Statements focuses on the analysis of publicly issued financial statements for decision making, and is taught from a user perspective. Students will learn to read, understand, and analyze a set of financial statements in a broad, decision-making context. Emphasis is placed on the consequences of recording accounting transactions on financial statements, and the application of Generally Accepted Accounting Principles (GAAP).

Course Resources

Required and recommended resources to complete coursework and assignments are listed on the My.CityU portal at Library>Resources by Course.

CItyU Learning Goals

This course addresses the following CityU Learning Goals:

  • Professional Competency and Professional Identity,
  • Strong Communication and Interpersonal Skills, and
  • Lifelong Learning.

Program Context

Interpretation of Financial Statements is intended for undergraduate business majors who will not necessarily be accountants, but who need to use financial information to make informed business decisions. Students will become familiar with the concepts and terminology of accounting, and learn to understand the impact of business decisions on the financial statements and on the business entity.

Course Outcomes

In this course, learners:

  1. Analyze the effect that business transactions have on the four basic financial statements;
  1. Compare and contrast the roles and responsibilities of management and the external auditor in developing and examining financial statements;
  1. Measure, evaluate, and compare the effect of accrual accounting vs. cash accounting on the financial statements and the resulting tax liabilities;
  1. Demonstrate understanding of the nature of inventory, the relationship to the cost of goods sold;
  1. Recommend effective internal control procedures, and explain their importance through examples and analysis;
  1. Analyze the accounting for Property, Plant, and Equipment;
  1. Apply time value of money (TVM) analytical;
  1. Analyze the overall financial health of a firm;
  1. Assess the implications of applying Generally Accepted Accounting Principles.

Core Concepts, Knowledge, and Skills

In this course, students acquire a working knowledge of the following accounting terms, products, and tools; principles, roles, management responsibilities, and external entities:

  • Income Statement,
  • Balance Sheet,
  • Statement of Retained Earnings,
  • Statement of Stockholders' Equity,
  • Dividends,
  • Recording Transactions,
  • Accounting Theory,
  • Accounting Principles,
  • Accounting Formulas,
  • Inventories,
  • Cost of Goods Sold,
  • Property, Plant, & Equipment,
  • Cash Accounting,
  • Accrual Accounting,
  • Generally Accepted Accounting Principles,
  • Proprietorships, Partnerships, and Corporations,
  • Role of Management,
  • Role of Auditors,
  • Internal Control,
  • Ethics,
  • Stockholder Rights,
  • and Sarbanes-Oxley.

Overview of Course Grading

The grade you receive for the course will be derived using City University of Seattle’s decimal grading system, based on the following:

Overview of Required Assignments / % of Final Grade
Problem 1 / 10%
Problem 2 (Ratio Analysis) / 10%
Midterm Examination / 30%
Final Examination / 30%
Oral Presentation and Report / 20%

Specifics of Course Assignments

Problems

Two problems assigned from the textbook text are to be submitted for grading. Your solutions should be as complete and well-supported as possible. See the section on “Professional Presentation” for guidance on the format for these problems. Also, be sure to refer to the grading criteria below for these homework assignments. Your instructor may provide different problems or additional information if necessary.

Grading Criteria for Problems

Accuracy of solution / 50%
Validity and completeness of analysis / 30%
Professional presentation / 10%
Grammar, spelling, and syntax / 10%
TOTAL / 100%

Ratio Analysis Problem

The analysis will require you to use the basic ratios defined in the textbook, as well as answer other questions about the financial statements. Your analysis of data will depend upon the questions posed in the problem or by your instructor, but may require you to reach a decision or recommendation and explain that decision. All narrative analysis and responses should be in depth and should demonstrate understanding of course concepts. Refer to the section on “Professional Presentation” for guidance on the proper format for the assignment.

Grading Criteria for Ratio Analysis Problem

Accuracy of solution / 50%
Validity and completeness of analysis / 30%
Professional presentation / 10%
Grammar, spelling, and syntax / 10%
TOTAL / 100%

Examinations

Examinations will be closed book. The instructor may elect to provide interest tables where necessary, but you should have a financial calculator during examinations. You are not allowed touse a computer during exams nor may you have an electronic organizer or any other electronic device that stores text data.

For any exam questions requiring computations, you must show all work, and label your computations clearly. For both problems and computational multiple-choice questions, partial credit may be earned based on well-labeled computations, even if the final answer is not correct. All work must be done on the exam pages provided; no extra paper of any kind may be used.

Your instructor may provide different or additional information about examinations as necessary.

ORAL PRESENTATIONand REPORT

This assignment is designed to (a) stimulate you to find out what is happening in the financial world today by reading current newspapers and magazines, (b) help you to learn the course material by seeing how it applies to real companies, events, and situations, and (c) challenge you to analyze and evaluate financial and accounting news so that you can form your own opinions.

You will prepare an oral presentation (12 -15 minutes) on some practical accounting problem (Go to your local library or visit the City University on-line library and review recent issues, look for news articles that (a) related to topics covered by the BSC401 course and (b) raise interesting issues about financial accounting problems). Support your presentation with the written summary (4-5 pages) with the main points and findings of your research.

Check with the instructor to make sure that an article or topic you found is appropriate.

Grading Criteria for Financial News Report

Choice of topic/problem (relevance, importance, interest) / 15%
Clarity of explanation of the problem / 25%
Explanation of the connection to the course material / 25%
Analysis and evaluation of the issues relating to financial accounting / 25%
Professional presentation / 10%
TOTAL / 100%

Professional Presentation of Written Work

All assignments submitted for this course should be of professional quality. You should consider your audience when preparing homework assignments.

This course requires that you use the American Psychological Association (APA) style with internal citations, in preparing any required research papers or any written work. Refer to this style guide for proper format, referencing methods, and bibliographic format. References should be cited for all facts, ideas, conclusions, and opinions not your own.

A proper title page should preface all written assignments, unless otherwise required. The title page should include your name, the title of the paper, the name and number of the course, the start date of the course, the date submitted, and the name of the instructor.

Your work should be typed or word-processed on white paper and all narrative portions should be double spaced. If financial statements or accounting records are required, they should be in good form. Some assignments may require that your work be prepared on a computer spreadsheet.

Do not use binders or special covers when submitting your assignments. Staple your completed assignments in the upper-left hand corner.

Course Policies

This document provides an overview of the course foundation elements, assignments, schedules, and activities. For information about general, City University of Seattle policies, please see the City University of Seattle catalog. If you have additional questions about the course, please contact your instructor.

Late Assignments

Students are expected to meet submission requirements for assignments in a timely manner. Evaluation includes an assessment of timeliness. Late submission of assignments may be penalized up to 100% of the grade.Your instructor will provide additional details.

Exams and assignments must be taken at the scheduled times. Any absences or late submissions must be approved before the scheduled date by your instructor. Not completing anassignment or exam in a timely manner will result in a grade of zero unless a student has been preapproved by the instructor to complete the assignment at an alternative time.

Use of laptops during the Lectures

Students are not allowed to use laptops or mobile phones during the lectures.

Professional Writing

All assignments submitted for this course should be of professional quality. The presentation should always take into account your intended audience.

This course requires that you use the American Psychological Association (APA) style in preparing any required research papers, or any written work where other sources are used. A style guide is included in the “Required Text and Materials” section. Refer to this style guide for proper format, referencing methods, and bibliographic format. References should be cited for all facts, ideas, conclusions, and opinions not your own.

A proper title page should preface all written assignments, unless otherwise required. The title page should include: your name, the title of the paper, the name and number of the course, the start date of the course, the date submitted, and the name of your instructor.

Generally, your work should be prepared in Word and all narrative portions should be double spaced. Electronic submission of all work is encouraged in face-to-face courses and required in online courses. See the instructions for the graded assignments for more information about format. If financial statements or accounting records are required, they should be in good form. Some assignments may require that your work be prepared on a computer spreadsheet.

Your instructor may have different or additional requirements for the submission of written work.

University Policies

You are responsible for understanding and adhering to all of City University of Seattle’s academic policies. The most current versions of these policies can be found in the university catalog that is linked from the CityU Web site.

Academic Integrity

Scholastic honesty in students requires the pursuit of scholarly activity that is free from fraud, deception and unauthorized collaboration with other individuals. You are responsible for understanding CityU’s policy on scholastic honesty and adhering to its standards in meeting all course requirements.

Attendance

Students taking courses in any format at the University are expected to be diligent in their studies and to attend class regularly. Regular class attendance is important in achieving learning outcomes in the course and may be a valid consideration in determining the final grade.

Support Services

Library Services

In order to help you succeed in this course, you have access to library services and resources 24 hours a day, seven days a week. CityU librarians can help you formulate search strategies and locate materials that are relevant to your coursework. For help, contact a CityU librarian through the Ask a Librarian service. To find library resources, click on the Librarylink in the My.CityU portal.

SmartThinking

As a CityU student, you have access to 10 free hours of online tutoring, including writing support, from certified tutors 24 hours a day, seven days a week. Contact CityU’s StudentSupportCenter at to request your user name and password.

Recommended Course Schedule

The schedule for course activities and assignments is below. If you find you are unable to complete the assignments as scheduled, contact your instructor.

Q = Question Ex = Exercise P = Problem

Session
/ Topics & Assignments Due / Readings and Assignments
1 / Accounting Principles
Internal Controll nad Cash / Chapter 7
Chapter 8
2 / Accounting for Receivables / Chapter 9
3 / Plant Assets, Natural Resources, and Intangible Assets / Chapter 10
4 / Liabilities
DUE: Problem 1 / Chapter 11
5 / Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings / Chapter 12
6 / Investments
DUE: Oral Presentation and Report
Midterm Exam / Chapter 13
7 / Time Value of Money
DUE: Oral Presentation and Report / App. C
8 / Statement of Cash Flows
DUE: Oral Presentation and Report / Chapter 14
9 / Financial Statement Analysis
DUE: Oral Presentation and Report
Due: Problem 2 (Ratio Analysis) / Chapter 15
10 / DUE: Oral Presentation and Report
Final Exam

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