BENTLEY UNIVERSITY

TOOLS AND CONCEPTS IN ACCOUNTING AND FINANCE

GB 112
FALL 2013
INSTRUCTOR:

Professor Karen K. Osterheld

OFFICE:

Location:
AAC282
Office Hours: Tuesday/Thursday 1:00-200 and by appointment
Telephone:
781-891-2724
E-mail:
kosterheld@bentley.edu
Course Blackboard Site: GB112 AllSections FA13
Class Blackboard Site: GB112.FA13.Osterheld.Tools & Concepts in
AC & FI

COURSE MATERIALS:
Customized text (electronic and printed) containing selected material from Financial
Management (11th edition), by Titman, Keown and Martin; Managerial Accounting (3rd edition)
by Braun and Tietz; Business Essentials (9th edition), by Ebert and Griffin; Financial
Accounting (9th edition), by Harrison, Jr., Horngren and Thomas; and cases from Auditing and
Accounting Cases: Investigating Issues of Fraud and Professional Ethics (3rdedition), by
Thibodeau and Freier; Pearson Custom Publishing, 2012, Third Edition.
The following link to MyLab provides access to the electronic version of the customized
textbook, MyFinanceLab and MyAccountingLab content:
http://pearsonmylabandmastering.com/

Windspark VI Instructional Narrative GB112 2013, by Mary Marcel et al. Available ONLY at
the Bentley University Bookstore.
Texas Instruments BA II Plus Financial Calculator.
COURSE DESCRIPTION:
The primary objective of this course is to provide a foundational understanding of accounting
and finance concepts and tools. This course takes students from double-entry accounting
through to an elementary understanding of how to construct financial statements. It introduces
the use of these statements as the basis for ratio analysis and budgeting. Students begin their
study of the basic time value of money concepts that are the foundation for basic valuation
techniques for both financial securities and projects valuation. Students are exposed to ethical
decision making in business.
COURSE GOALS:
The purpose of this course is to teach students the basics of finance and accounting so that they
will be able to appreciate the role and importance of these functions in business. The course will
cover several finance and accounting topics including an introduction to business, the time value
of money, valuing investments, double-entry accounting, financial statement preparation and
analysis, internal controls, and auditing.

STUDENT LEARNING OBJECTIVES:

The overall objective is to provide students with an understanding of why accounting and finance
information is important and how it is used in evaluating a companys performance. Students
will be able to:
Knowledge
Develop a foundation in accounting and finance in order to understand the language of
business.
Identify ethical and legal responsibilities to stakeholders.
Skills
Use analytical tools and techniques in order to perform basic financial statement analysis.
Develop a beginning understanding of and begin to use financial databases and/or
software available on the Internet, in the Trading Room, the ACELAB and the Library for
financial reporting, analysis and interpretation.
Demonstrate basic problem-solving skills in financial valuation (e.g., time value of
money and security valuation).
Concisely and clearly convey the key issues in current business events in writing.
Perspectives
Demonstrate an understanding of the role of finance and accounting in global society as
appropriate.
Consider a problem and solution in the context of a globally connected economy.
TOOLS NEEDED:
1. The course materials listed above.
2. Computer access including access to the Internet and E-mail (access to the GB112
AllSections Fall 2013 blackboard site is required since many handouts and other
information will be distributed via this site).
3. A word processing software package and a spreadsheet package (such as Word and Excel).
COURSE ROUTINE AND EXPECTATIONS:
As reflected in the objectives, this course is student-oriented. It requires active learning, which
means that each student must take responsibility for the learning that takes place. This is not
intended to be a knowledge transfer process; it is intended to be a shared learning experience. At
each class session we (students and instructor) will discuss assigned cases, questions, exercises,
and problems. Therefore, each student must study and think about all homework assignments
and be prepared to participate actively and intelligently in class discussions. Attendance at all
classes is very important.

The following are expectations for all class meetings:

Students are expected to arrive on time prepared with the material assigned for that day.
Students are expected to actively participate in class discussions.
Students are required to turn off cell phones, smart phones and similar devices.
Students are responsible for material covered in any missed classes.
THE BENTLEY ACADEMIC HONESTY SYSTEM:
Learning is a privilege that demands responsibility. At Bentley, students and faculty are
members of an academic community that support integrity both inside and outside the classroom.
The expectation at Bentley is that students will take advantage of the opportunity for intellectual
development and, in doing so, will conduct themselves in a manner consistent with the standards
of academic integrity. When these standards are violated or compromised, individuals and the
entire Bentley community suffer. Students who engage in acts of academic dishonesty not only
face university censure but also may harm their future educational and employment
opportunities.
The full policy, including the Honor Code, can be found at:
http://www.bentley.edu/centers/alliance/academic-integrity
Students are responsible for familiarizing themselves with and understanding the academic
honesty guidelines presented in the Student Handbook and on the GB112 AllSections
Blackboard site. Academic dishonesty in this course will result in penalties, including the
possibility of failure of the course.
STUDENTS WITH DISABILITIES:
Bentley University abides by Section 504 of the Rehabilitation Act of 1973 and the Americans
with Disabilities Act of 1990 which stipulate no student shall be denied the benefits of an
education solely by reason of a disability. If you have a hidden or visible disability which may
require classroom accommodations, please make an appointment with the Assistant Director of
Disability Services, Stephanie S. Brodeur, within the first 4 weeks of the semester. The Office of
Disability Services is located in the Office of Counseling and Student Development (CSD),
Callahan 2nd Floor, 781.891.2274. The Assistant Director of Disability Services is responsible
for coordinating accommodations and services for students with disabilities.
EVALUATION:
The course grade will be based upon the following weights:
Two in-class examinations1
Comprehensive final exam1
Course project2
MyLab Milestones3
Manual Homework4
Participation and preparedness5
Enron movie, Team Contract and Work Plan,
Library quizzes, Trading Room6
Total

45%
25%
15%
3%
3%
4%
5%
100%

Two examinations will be given in the regular classroom during the normal class time. The
lower exam score of the two exams will be weighted 20% and the higher exam score will be
weighted 25%. The final exam will be a comprehensive exam scheduled on Saturday, December
14th, 11:30 am-1:30 pm. Text-capable technologies, including cell phones, smart phones and
similar devices, will not be allowed for exams. If an exam is missed for a valid reason (e.g.,
death in the family, a religious holiday, or a documented illness), an opportunity to take a special
examination will be provided, subsequent to approvals by the instructor and the course
coordinator,
2

The course project will require teams of three students each to perform financial analysis on a
company. The project will involve completion of a Team Contract, the use of the Bentley
University Trading Room and the Library and other electronic resources. See separate handout
for details, including required reports and analyses.
3

This course will use MyAccountingLab and MyFinanceLab for completion of many homework
assignments and all MyLab milestones. MyAccountingLab and MyFinanceLab homework will
not be collected. The prerequisite to complete a certain MyLab milestone is a score of at least
70% on the MyLab homework related to that milestone. If you do not complete a milestone by
the due date, you will earn a grade of zero for that milestone. The lowest MyLab milestone score
will be dropped.
Four manual homework assignments will be collected randomly during the semester. Of those,
you may miss one without a penalty. No excuses, including absence from the class when the
assignment was collected, will be accepted for any other missed assignments. These homework
assignments are worth 3 points toward your final course grade. For each properly completed
assignment, you will earn one of these points, for a maximum of 3 points.
4

Attendance, contributions to class discussions (i.e., meaningful participation, both individually

and as a group member) and preparedness are important aspects of active learning. The
instructor will randomly select students for discussion of cases, questions, exercises, and
problems in class.
5

There are several important additional course requirements that were developed to enhance your
learning experience in the course. Successfully completing these requirements will earn you 5
points toward your final course grade. Failure to successfully complete any one of these
requirements will result in a loss of 3 of the 5 points allocated to this requirement, with a
maximum penalty of 5 points.

GB112
FALL 2013
TENTATIVE SCHEDULE OF ASSIGNMENTS1
Date

Class

9/3

9/5

9/10

Topic

Reading Due
on this Date2

Manual
Homework/Projects
Due on this Date3

Introduction to Class;
Formation of a Business
Objectives of a Business;
Forms of Organization

Enron Article

Enron Assignment
from First Week
IN: Ch 1: Q 1,2,4;
Ch 2: Q 1,2,4,5
EG: Ch 2: Q 1,2,3
Ch 3: Q 3

Sources of Financing

EG: Ch16
p.420; pp.
426-435

IN2: Ch 1, 2
EG2: Ch 2, 3

Online
MyLab
Homework
Due this Date3

MyL
Miles

EG: Ch 2: Q 7,8;
Ch 3: Q 4

Types of
Financing
for a
Business

9/12

Sources of Financing
-Pros and Cons of
Financing Sources

9/17

Time Value of Money

TKM2: Ch 7
pp.203-206,
Ch 9 pp.260268 (exclude
floating rate),
281-283; Ch
10 pp. 302306, 317318, 322-323
IN: Ch 3

IN: Ch 4
TKM: Ch 5
pp. 126-143,
Ch 6 pp. 158169
Fin.
Calculator
Tutorial

IN: Ch 3: Q 1,2,3,4
EG: Ch 3: Q 5, 6 Ch
16: Q 1, 3, 5, 8
TKM: Ch 9: Q-2, 9,
Ch 10: Q-,8,9
Day 4 Problems
IN: Ch 4: Q 1,2,3
Day 5 Problems

TKM: Ch 7
Milesto
P7-2, P7-3, P7- Classes
4
(MyFin
Lab-TK
TKM: Ch 5
P5-1, P5-2

9/19

Time Value of Money

Date

Class

9/24

Time Value of Money

9/26

Time Value of Money and

Security Valuation

TKM: Ch. 9
pp. 265-281

Day 8 Problems

10/1

Projected Cash Flows

IN: Ch 5

IN: Ch 5: Q 1,2,3,4

Topic

Day 6 Problems

Reading Due
on this Date2

Manual
Homework/Projects
Due on this Date3
TKM: Ch 5: P5-29,
P6-12

TKM: Ch 5: P5-21,
Ch 6: P6-48
10/3

10

Exam 1

10/8

11

The Accounting Equation

and Financial Statements

IN: Ch 6
HHT2: Ch 1

IN: Ch 6: Q 1,2,3
HHT: E1-24A

Course
Project
10/10

10/17

12

13

Generally Accepted
Accounting Principles

Transaction Analysis

IN: Ch 7
EG: Ch 14
pp. 376-377
HHT:
Appendix D;
Appendix E;
Ch 2 pp. 6072
Ch 3 pp.136140;
PowerPoint
Slides on IFRS
IN: Ch 7
HHT: Ch 2
pp.60-83
6

IN: Ch 7: Q 3,5
Print out
Bladerunners
Exercise #1 including
spreadsheet template
and bring to class

TKM Ch 5:
Milesto
P5-4, P5-6, P5- Classes
10, P5-11
(MyFin
Lab-TK
Online
My
MyLab
Miles
Homework
Due this Date3
TKM Ch 5:
P5-12, P5-13,
P5-14, P5-15,
P5-19, P5-28,
Ch 6: P6-1, P63, P6-6
TKM Ch 5 P5- Milesto
17, P5-18, P5- classes
22, P5-30, P5- (MyFin
31, P5-32, Ch
Lab T
6:P6-2, P6-27,
P6-38, P6-39,
Ch 9: P9-3
TKM Ch 6:
Milesto
P6-41, P6-42,
class 9
P6-50, Ch 9:
(MyFin
P9-4, P9-5, P9- Lab TK
6, P9-7, P9-8,
P9-12, P9-16
HHT: Ch 1:
S1-8, S1-10,
S1-11, S1-12,
E1-16A,
E1-17A, E118A
HHT: S1-5,
P1-55A, P 157A, E3-20A

GAAP Minicases
HHT: Ch1 Decision
Case 1
IN: Ch7: Q 1, 2, 4
TF: Case 1.4: prepare
a list of 5 facts and

HHT: S2-2,
S2-5
E2-15A,

Milesto
classes
12 (My
Accoun
Lab H

TF3: Case
1.4
Topic

answer
questions 1 and 2
HHT: E2-27B
Reading Due
Manual
on this Date2 Homework/Projects
Due on this Date3

E2-16A, E321A

Date

Class

10/22

14

Debits and Credits The

Accountants Vocabulary

IN: Ch 8
HHT: Ch 2
pp. 73-83

IN: Ch8: Q 1,2

Print out
Bladerunners
Exercise #2 including
the T-accounts
spreadsheet template,
and bring to class.
Complete part A of
Exercise #2 before
class.
HHT: S2-6, S2-8

10/24

15

Debits and Credits The

Accountants Vocabulary

HHT: Ch 2
pp.73-92
TF: Case 1.7

TF: Case 1.7:

prepare a list
of 5 facts and answer
questions 1 and 2
HHT: P2-66B

HHT: P2-60A,
S2-9, S2-10

10/29

16

Preparing Financial
Statements

HHT: Ch 3
pp.162-165;
Review
Appendix A
(851-854)
and
Appendix B
(875-878)

HHT: P2-69B

HHT: P2-62A,
P2-63A,
S3-15

10/31

17

Transaction
Analysis/Preparing
Financial Statements

Day 17 Problem
HHT: P2-59A; use
results to complete
P2-58A parts 2, 3,
and 4

HHT: E1-21A;
E1-22A; P166B

11/5

18

Exam 2

11/7

19

Accounting Information
Systems
The Role of the Auditor

HHT: Ch. 11
pp. 666-668
TF Case 4.1
Auditors
Reports
Handout
AIS Handout
7

HHT: S11-14
TF Case 4.1:
Prepare a list of 5
facts

Online
My
MyLab
Miles
Homework
Due this Date3
HHT: E2Milesto
17AS2-7,
classes
S2-12
14 (My
Accoun
Lab H

Milesto
classes
(My
Accoun
Lab H

Date

Class

11/12

20

Topic

Accounting Information
Systems and the System
of Internal Controls; this
class will meet in a
different classroom.

Reading Due
on this Date2

Manual
Homework/Projects
Due on this Date3

IN: Ch 9
HHT: Ch 4
pp.230-242

IN: Ch 9: Q 1,2
HHT: S4-2
Print out and bring
Sage Handout to
class

Online
MyLab
Homework
Due this Date3

My
Miles

Milesto
Classes
20
(My
Accoun
Lab H

AIS Discussion
Questions
11/14

21

The Adjustment Process

IN: Ch 10
HHT: Ch 3
TF Case 2.1

11/19

22

The Adjustment Process

HHT: Ch 5
pp. 293 - 301
TF Case 1.5

11/21

23

The Adjustment Process

TF Case 1.9

11/26

24

The Accounting Cycle

and Preparing Financial
Statements

TF Case 1.1

12/3

25

Interpreting Financial
Statements The Effect
of Accounting Choices
and Estimates

IN: Ch 11
HHT: Ch 6
pp.337-342
345-355
Earnings
8

IN: Ch 10: Q 1,2

TF Case 2.1:
Prepare a list of 5
facts
Complete Handout
on Ernst & Young
Speaker
HHT: S3-6
IN: Ch 10: Q 3
TF Case 1.5: prepare
a list of 5 facts and
answer questions 1
and 2
HHT: P3-67A, S5-8
Course Project Due
TF Case 1.9: Prepare
a list of 5 facts and
answer questions 1
and 2
HHT: P3-76B
Bladerunners
Exercise 3
TF Case 1.1 Prepare
a list of 5 facts and
answer questions 1
and 2
HHT: E3-26A

HHT: E3-20A,
E3-21A

IN: Ch 11: Q 1
Complete Inventory
Handout #1
HHT: P3-72A, part 1

HHT: P3-71A

HHT: E3-24A,
E3-25A

HHT: E5-24A,
E5-27A

HHT: E3-29A

Milesto
Classes
through
(My
Accoun
Lab H

Management
Article
Date

Class

12/5

26

Sat
Dec
14

Topic

Earnings Management
and Fraud

Reading Due
on this Date2

Manual
Homework/Projects
Due on this Date3

Earnings
Management
and Fraud
Readings

IN: Ch11: Q2
Complete Earnings
Management and
Fraud Discussion
Questions and
Minicases
Complete Inventory
Handout #2

Online
MyLab
Homework
Due this Date3

Common Final Exam

Sat. Dec. 14, 11:30 am1:30 pm

Changes to this schedule are possible - please stay informed! Check the GB112 AllSections Fall
2013 Blackboard Site regularly for updates, hints, news, etc.
2

Textbooks:
IN: Windspark VI Instructional Narrative GB 112, by Mary Marcel et al.
EG: Business Essentials, 9h edition, by Ronald Ebert and Ricky Griffin
TKM: Financial Management: Principles and Applications, 11th edition, by Sheridan Titman,
Arthur Keown and John Martin.
HHT: Financial Accounting, 9th edition, by Walter Harrison, Jr., Charles Horngren and C.
William Thomas
BT: Managerial Accounting, 3rd edition, by Karen Braun and Wendy Tietz.
TF: Auditing and Accounting Cases: Investigating Issues of Fraud and Professional Ethics, 3rd
edition, by Jay Thibodeau and Deborah Freier
3

Manual homework will be collected randomly (see note 4 on page 4 above for collection policy
and grading implications). Readings and assignments in Italics will be available through the
GB112 AllSections Blackboard Site. Additional readings and assignments may be made during
the semester.
4

Each MyLab milestone has a time limit of 2 hours. A milestone listed on a specific date on this
schedule is available on MyAccountingLab or MyFinanceLab at 6:00pm on the day preceding
the specific date and must be completed by 11:59 pm on the day following the specific date. (For
example, if a milestone is shown on the schedule on Class 4, September 12th, this milestone is
available in MyAccountingLab or MyFinanceLab at 6:00 pm on September 11th and is due at
11:59 pm on September 13th.)

My
Miles