All class emails are sent to the email address per the NYU Brightspace roster. The Almaris system (if used for your class) also uses the same email. NYU Brightspace lists @nyu.edu email for some of you and @stern.nyu.edu email for others. I don’t control these matters, nor can I change them. Please contact NYU IT (212-998-3333) or NYU Stern IT (212-998-0180) to learn how to read/forward/check spam for @nyu.edu as well as @stern.nyu.edu accounts. Contact them for all ZOOM/email/NYU Brightspace/Admin/CapitalIQ issues. If NYU/Stern support cannot help you, please escalate these matters to Student Affairs/Dean's office without involving me. I will not respond to support requests. Almaris support cannot change emails. You can do so by clicking on the link "Change email" on their main login page.

Overview

This course will explain financial accounting from a new angle so that you have some of the background necessary for intermediate courses in financial reporting, analysis, and modeling. The course presents a framework for analysis and provides spreadsheets to implement the framework.

Prerequisites

Help and Office

Materials

Assignments

Exams and Grading

Schedule

There will be five class sessions of three hours each. The last session will be the final exam.

Class Topic
1
  • Accounting terms, transactions, and systems
  • The logic of the double-entry bookkeeping systems
  • How the separation of duties is used to reduce fraud
2
  • Performance measures: Cash flows versus income flows
    • Accrued revenues or receivables
    • Deferred revenues or advances
    • Accrued expenses or payables
    • Deferred expenses or prepayments
  • Design of incentive systems
3
  • The core set of business transactions and how they affect the following statements:
    • Balance sheets
    • Income statements
    • Indirect cash flow statements
    • Direct cash flow statements
4
  • Costs versus expenses versus payments
  • Period costs versus inventoriable costs versus separately capitalized costs
  • Inventories: Raw materials, work in process, and finished goods
  • Cost flow assumptions: LIFO versus FIFO
5
  • Property, plant, and equipment: Gross PP&E, Accumulated depreciation, and Net PP&E
  • Which costs are capitalized
  • Useful life versus economic life versus physical life; Salvage values; Depreciation patterns
  • How depreciation of manufacturing equipment is inventoried
  • Gains and losses on the sale of PP&E
  • PP&E impairments
6
  • FINAL EXAM