UNIVERSITY OF MIAMI

School of Business - Department of Accounting

ACC 211 – Principles of Financial Accounting
August 20th through December 4th, 2018
Sections B, C-H, and D1 in Dooley Memorial 313,
Section G2 in Stubblefield 502, and Section U in Dooley Memorial 314

Name: Prof. Seth Levine, CPA

Office: School of Business, Kosar Epstein Faculty Office Wing, Room 317
Phone: (305) 284-4927
Email: slevine@miami.edu
Office Hours: MWF’s from 12:30 – 2:15 pm, and by appointment

COURSE DESCRIPTION

Accounting is called the language of business. Accordingly, an understanding of accounting is

beneficial regardless of your academic major or career goals. This course is the first in a sequence
of courses offered by the Department of Accounting of the University of Miami. It introduces you to
a series of topics generally described as financial accounting. This course explores the role of
accounting in providing financial information about an enterprise to external decision-makers.

LEARNING OBJECTIVES

At the conclusion of this course students should:

 Recognize the information conveyed in each of the four basic financial statements and the
way that it is used by different decision makers (investors, creditors, & managers).
 Define the objective of financial reporting, the elements of the balance sheet, and the
related key accounting assumptions and principles.
 Explain the accrual basis of accounting and apply the revenue and matching principles to
measure income.
 Analyze the adjustments necessary at the end of the period to update balance sheet and
income statement accounts.
 Identify the steps in the accounting communication process, including the issuance of
press releases, annual reports, quarterly reports, and SEC filings as well as the role of
electronic information services in this process.
 Apply the revenue principle to determine the accepted time to record sales revenue for
typical retailers, wholesalers, manufacturers, and service companies.
 Report inventory and cost of goods sold using the four inventory costing methods.
 Define, classify, and explain the nature of long-lived productive assets and interpret the
fixed asset turnover ratio. Apply the cost principle to measure the acquisition and
maintenance of property, plant, and equipment.
 Define, measure, and report current liabilities.
 Describe the characteristics of bonds and use the debt-to-equity ratio.
 Explain the role of stock in the capital structure of a corporation. Analyze the earnings per
share ratio. Describe the characteristics of common stock and analyze transactions
affecting common stock. Discuss dividends and analyze transactions.
  Classify cash flow statement items as part of net cash flows from operating, investing, and
financing activities. Report and interpret cash flows from operating activities using the
indirect method.
REQUIRED TEXTBOOK
Financial Accounting, by Libby, Libby, & Hodge, 9th edition McGraw-Hill (see HW section below)

OTHER REQUIRED MATERIAL

Building Blocks of Accounting, A Financial Perspective (Cybertext), by Mark Friedman (See below)
https://www.youtube.com/channel/UCTFyzuQXLtZwwjbsB_KhlKg - Click on link and subscribe
About Accounting (Green Book), by Juan Rodriguez (Only available in the bookstore)

ACCOUNTING PRACTICE SET

Students will be required to complete a computer based practice set. The practice set, Building
Blocks of Accounting - A Financial Perspective, by Mark Friedman, will be available over the
Internet during the second week of the course. Students are required to complete a series of
journal entries and then must upload them over the Internet for grading. The project is due no
later than 48 hours before your first exam. Practice sets submitted late are assessed a penalty.
The practice set will be computer graded immediately upon uploading. Students are encouraged
to submit their project several times before the due date to improve their score. Only the score for
your latest submission is the one that will count. No hard copy reports need to be turned in.

ABOUT ACCOUNTING - FINANCIAL ANALYSIS PROJECT (GREEN BOOK)

Each student will be required to complete a project consisting of an analysis of two publicly traded
companies. Please read the instructions carefully and coordinate with me about any doubts you
may have. The completed project is due on the final day of class, so December 3rd or 4th.

HOMEWORK ASSIGNMENTS AND PARTICIPATION

We’ll be utilizing McGraw-Hill’s Connect product for all HW assignments. Your unique link is below:

***** http://connect.mheducation.com/class/s-levine-acc-211-fall-2018 *****

Once you click on the link, scroll down to view your options for registering or purchasing.

You have three (3) options for purchasing and utilizing the textbook and related Connect product:

1) Recommended – Click on the link above and purchase Connect Plus from McGraw-Hill for
$131.50. This gives you full access to your eBook, Learn Smart, and all assignments. If you
purchase your textbook this way, then you also be given the option to order a special loose-
leaf hard copy version of the text for $60. (Thus, this option will cost $131.50 or $191.50.)

2) If you already purchased the textbook from anywhere else other than the bookstore, then
you will still need to purchase a Connect Plus product code from McGraw-Hill for $131.50.

3) If you already purchased the textbook package in the bookstore, then you should already
possess the Connect access code you need, and thus you don’t need to purchase one.
Please look for it inside your textbook and don’t lose it. (This option will cost about $200.)

Homework is assigned in order to facilitate your understanding of the material. The selected
assignments to be given in class should be viewed as examples of some of what I consider more
critical materials in the chapter and only partially as guides to prepare for exams. In other words,
the exams are designed to provide evidence of your understanding of the chapter and, therefore,

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may include some chapter items that were not included in the homework assignments. Thus, there
is no substitute for a thorough study of the chapter materials. It should be noted that exams will
emphasize, but not be limited to, areas well covered in class discussions.
EXAMINATIONS
There will be two exams plus a final given during the term. Each of the first two exams will cover
the material up to that point. No make-up exams will be given during the term, except for
extraordinary situations. If you are going to miss an exam, you must contact me prior to the exam
or you will get zero points on the exam. If I determine that you have a valid reason (documented
illness, major family circumstances, etc.) for missing the exam, arrangements may be made for a
make-up (although no guarantees are provided), or at my discretion, your cumulative final exam
will be weighted more heavily. You need to contact me in writing regarding examination difficulties.
Do not assume that contacting me by phone or leaving a phone message constitutes proper
notification.

*** If you are unable to take the final exam on the date and time prescribed for
your specific section, then please do not take this class. Departmental policy
does NOT permit make-up final exams under any circumstances. ***

COURSE GRADES

Mid-Term Exam #1 22%

Mid-Term Exam #2 22%
Cumulative Final Exam 33%
Building Blocks Project - Cybertext 8%
Financial Analysis Project – Green Book 5%
Connect Homework Assignments (Best 10 chapters out of 12) 10%

Total 100%

ATTENDANCE
Your presence in this course is essential to your ability to understand and apply the material
covered in this course. Treat this class as you would any other professional obligation. By
accepting a job you are making an implicit commitment to attend work regularly. By registering for
this course you make a similar commitment. Missing classes will have a negative effect on your
class grade. Absence from class does not exempt you from being responsible for all the materials
covered in class and being aware of any announcements made in class. If you miss class it is your
responsibility to obtain the lecture or discussion notes and handouts, if any, from your classmates.

In the event you are not officially registered for this course on the very first day of classes, perhaps
because you are wait-listed or because you are adding this course within the University’s
prescribed drop-add date, you are still expected to be present and involved in this course from the
very beginning. Faculty retain the authority after the drop-add date to allow students to add the
class only if students have complied with this requirement. Realize that joining any class late,
especially this course, will increase your workload along with inherent risks and responsibilities.

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PREPARATION AND CLASS PARTICIPATION

The Department believes that the student’s presence and participation in class are essential
elements of the learning experience. The value of the course lies in preparing for, listening to, and
participating in the class discussion. It is impossible for a student to make up a missed class by
simple analyzing the readings or getting the notes for the day. Therefore, it is expected that you will
attend every class, arriving on time so that we may start promptly.

Students may enter class late only if given permission by the instructor and only if they can do so
without disrupting the class. In addition,
 Students may not leave and re-enter the class once class has started except by permission
from the instructor and only if they can do so without disrupting the class.
 Arriving late or leaving class early will have an impact on their course grade as determined
by the instructor.
Please note that instructors are not obligated to admit late students or may choose to admit them
only at specific times and instructors are not obligated to readmit students who leave class.

Participation in class and a positive attitude are critical for earning participation credit. If students
do not read the assigned materials, do not participate in class discussion, and/or are disruptive,
then the final grade will reflect a penalty for unprepared, non-participating students. Therefore,
students are expected to have read the chapters to be covered in class in addition to having
completed the scheduled assignments that are due for that day.

GENERAL POLICIES

Religious Holy Days: Observance of religious holy days will be respected. It is the student obligation
to provide faculty members written notice of dates he/she will be absent due to observance of
religious days. Notice from the students should be provided no later than the end of the first three
meeting days of the particular course. If absences are properly notified students will not be penalized
for an examination or assignment missed during the period of absence.

Dropping the Course: The drop policy is dictated by the University catalog. Anyone who has not
dropped by the official drop date will receive a grade for the course.

Incomplete Grades: The School of Business Administration policy regarding “I” grades is that an
incomplete is only to be given when a student is unable to complete a course for a non-academic
reason (such as an accident or illness that confines the student to the hospital). An “I” is not
appropriate when a student is not passing a course.

An "I" is only appropriate in cases when a student is a.) passing the course, and, b.) unable to
complete part of the course for extenuating circumstances, as mentioned above. Accordingly, an "I"
will not be given to students who are failing the course, or to students who wish to repeat the course.
An "I" will not be given to students who do not complete one of the course projects.

Extra Credit: The University has a strict policy on extra credit which states that extra credit may not
be offered to individual students. If extra credit assignments are made available to one student, then
they must be made available to all students, so please don’t ask me about this privately.

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Use of Calculators during Exams: Each student is encouraged to have his or her own calculator to
use during exams. Sharing of calculators during exams is not permitted because it is an imposition
to the student who brought the calculator and a possible source of cheating. Students are not
permitted to use programmable calculators during exams. The use of any calculator capable of
recalling information such as names, phone numbers, equations, or other user-entered information
will be considered cheating, whether or not such information has been entered into the calculator.

Therefore, we recommend that you consider any of the following models from Texas Instruments:

The TI BA II Plus, (about $35), recommended since this one that is required for taking Finance 301,
the TI-36X (about $25), the TI-30X IIS (about $20), or the TI-30X (about $15).

Computers and Cell phones: Before you enter the classroom, please turn off and put away
your cell phone (and anything else that may beep or ring). Laptops, Smartphone’s, PDA’s,
and other electronic devices (such as recording equipment) may NOT be used during class.

Other Comments: I cannot answer individual questions during an exam. I will do so only for the
entire class if deemed pertinent. In this way nobody gets preferential treatment. Please use your
judgment and learn to trust it.

ACCESSIBILITY RESOURCES

The purpose of Accessibility Resources (AR) is to assist University students by providing

recognized procedures for assuring that students with disabilities have equal access to University
courses and programs. All students seeking accommodations for a disability must register with AR.
Students should register as soon as possible so that the office has sufficient time to receive and
review the necessary documentation and coordinate reasonable accommodations. AR is located in
Whitten University Center, N-210 (305.284.2374). http://www.umarc.miami.edu

ACADEMIC INTEGRITY

Please note the following policy of the University:

“All forms of scholastic dishonesty are prohibited, whether related to a written or oral
examination, a thesis, term paper, mode of creative expression, computer-based work, or
other academic undertaking. Scholastic dishonesty includes but is not limited to cheating,
plagiarism, collusion, the falsification or misrepresentation of experimental data, and
violating the professional ethics that obtain in clinical activities, research projects and
internships. In determining what constitutes academic dishonesty, a student should be
guided by the purposes of this code, common sense, and information provided by the
instructor.”

Acts of scholastic dishonesty will not be tolerated. Students are responsible for reading,
understanding, and upholding the Undergraduate Student Honor Code available from the Office of
the Dean of Students: http://ww.miami.edu/dean-students/pdf/undergrad_honorcode.pdf

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 Tentative Class Schedule

Week Chapter Topics

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8/20 1 Financial Statements & Business Decisions

8/27 2 Investing and Financing Decisions and the Accounting System

9/3 3 Operating Decisions and the Accounting System

9/10 4 Adjustments, Financial Statements & Earnings

Your Building Blocks project must be uploaded to Cybertext for

the final time no later than 48 hours prior to your first midterm.
9/19 Sections B-G Wednesday - Midterm #1 on Chapters 1, 2, 3, & 4
9/20 Section U Thursday - Midterm #1 on Chapters 1, 2, 3, & 4
9/24 5 Communicating and Interpreting Accounting Information

10/1 6 Reporting and Interpreting Revenue, Receivables, and Cash

10/8 7 Reporting and Interpreting Cost of Goods Sold and Inventory

10/15 8 Reporting & Interpreting Property, Plant, & Equipment

10/25 Sections B-G Wednesday - Midterm #2 on Chapters 5, 6, 7, & 8

10/26 Section U Thursday - Midterm #2 on Chapters 5, 6, 7, & 8
10/29 9 Reporting and Interpreting Liabilities

11/5 10 Reporting and Interpreting Bonds

11/12 11 Reporting and Interpreting Owners’ Equity

11/19 Thanksgiving Week Break

11/26 12 Statement of Cash Flows

12/3 Sections B-G Submit Green Book Assignments and Review for Final Exam
12/4 Section U Submit Green Book Assignments and Review for Final Exam
12/7 Section B Final Exam - Friday, December 7th from 8 – 10:30 AM
12/12 Section C-H Final Exam - Wednesday, December 12th from 11 – 1:30 PM
12/10 Section D1 Final Exam - Monday, December 10th from 8 – 10:30 AM
12/7 Section G2 Final Exam - Friday, December 7th from 2 – 4:30 PM
12/11 Section U Final Exam - Tuesday, December 11th from 8 – 10:30 PM