MB101

Accounting: A User Perspective

_________________________________________________________________________

Academic Year : 2010/2011 Semester : 1

Anne Chia
Course Adjunct Associate Professor Other Li Bing
: :
Coordinator Lau Yin Kheng Instructor(s) Wang Ying, Elaine
Zhou Bo
Pre-requisites : None

No. of AUs : 3

Course Description and Scope

This is a basic course in financial and managerial accounting meant for non-accounting and non-
business students. It exposes students to the environment of accounting and its role in providing
useful information for decision making by various stakeholders of business organizations. By the end
of the course, students should be able to appreciate the role, scope and value of information for
managing business organizations towards achieving their objectives.

Students will learn fundamental concepts and techniques in financial and managerial accounting,
which is concerned with both external and internal reporting. In this course, students are treated to an
understanding of a broad range of the underlying accounting concepts without the need to be involved
in too much detail associated with the processes. Whilst non-accounting and non-business students
need not have to prepare comprehensive financial statements, it would be beneficial for them to be
able to understand, interpret, analyse and use them.

Course Learning Objectives

1. To understand the role and structure of the accounting and control functions within an
organization.

2. To use relevant financial information for control and decision making and employ basic
quantitative and qualitative techniques to interpret and analyse financial information.

3. To develop students’ analytical, verbal and presentation skills.

Learning & Teaching Methods

The teaching-learning mode is structured into 1.5 hours lecture and 1.5 hours seminar per week. The
first lecture will commence on 6 September 2010 and the first seminar will commence on 13
September 2010.

The purpose of the lecture is to expose students to the basic concepts and principles of accounting.
The purpose of the seminars, unlike the lecture, is to have small-group classes so that detailed
analysis, interaction and discussion are possible. The seminars involve a variety of learning activities
such as (a) discussion of conceptual overview of the assigned material for the seminar, (b) critical
analysis and discussion of the relevant literature, (c) the use of relevant case studies for developing
critical analysis, discussion and presentation skills, and (d) dealing with hands-on basic numerical
problems for developing essential technical knowledge and skills.

Other learning activities outside class-contact time may include online quiz and e-learning activities
found in “MB101 Accounting Learning Centre” to be set up in Edventure. Students would be
encouraged to explore the issues further through the various learning activities mentioned above.
Group discussion is strongly encouraged as it enables examining an issue or problem from multiple
perspectives and it facilitates developing communication and group working skills.

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Course Assessments

Components Marks Individual/Group

Coursework
Presentation/Participation 20 Individual/Group
Online Quiz (closed book) 20 Individual
Final Examination (closed book) 60 Individual
Total 100

Assessment Plan

Course Learning Objective Assessment Method

Online Quiz
To understand the role and structure of the accounting and control
Examination
functions within an organization.
Presentation/Participation

Online Quiz
To use relevant financial information for control and decision making
and employ basic quantitative and qualitative techniques to interpret Examination
and analyse financial information.
Presentation/Participation

Online Quiz
To develop students’ analytical skills. Examination
Presentation/Participation

To develop students’ verbal and presentation skills Presentation/Participation

Presentation/Participation (20%)

(a) In-class Presentations (10%)

Each student will be assigned a group at the beginning of the semester. Each group will then be
assigned on a random basis to present questions in a tutorial. Every member of the presentation
group is expected to participate and present in front of the class. All presentations must be in
PowerPoint format. Students will be assessed based on the quality of the presentation on an
individual as well as on a group basis.

(b) Oral discussions during class (10%)

Assessment will be based on active participation in class discussions which include asking relevant
questions, volunteering a response to instructor’s questions, or responding to an instructor’s “cold
call”. Class participation points will not be earned by merely attending class. In addition, absence
from class without a valid medical certificate will earn you a zero score for class participation in the
week of your absence.

Online Quiz (20%)

The online quiz will be administered during tutorials in the week commencing 25 October 2010 (the
week immediately after the recess week). The quiz, which comprises multiple-choice questions, will
be conducted in IT labs. The coverage of the quiz can include all topics discussed during lectures
and tutorials up to that point. Students who are absent from the quiz without a valid medical
certificate will be awarded a zero score.

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Final Examination (60%)

The final examination is closed book and will be held on Wednesday, 15 December 2010 at 5.00pm.

Readings and References

Main Text

WHB: Williams, J.R., Haka S.F. and Bettner M.S.

Financial and Managerial Accounting: The Basis for Business Decisions, 15th Edition,
McGraw-Hill (2008). (Call No: HF5635.M512A 2010 Reserve Book Room)

Supplementary Texts

The following are suggested texts to supplement the main text for additional reading materials,
whenever necessary. You need not buy them; they will be made available in the library.

RJMHH: Rich, J.S., Jones, J. P., Mowen, M.M., Hansen, D.R. and Heitger, D.L.
Cornerstones of Financial & Management Accounting – Current Trends, International
Edition, 1 E, Cengage Learning South Western (2010)

HHO: Horngren, C.T., Harrison, W.T., and Oliver, M.S.

Financial and Managerial Accounting, 2nd Edition, Pearson (2009)
(Call No: HF5636.H816 2009)

MMV: Marshall, D.H., McManua, W.W. and Viele, D.F.

Accounting: What The Numbers Mean, 9th Edition, McGraw-Hill (2010)

Other Resources

Websites

Each student of the course will have access to three websites in the Edventure. In the first, MB101
Accounting: A User Perspective, most of the resource materials required for the lectures and
tutorials will be posted on it. In the second, MB101 Accounting Learning Centre, students are
advised to access it for self-learning and online tutorials. There are also chapter summaries for every
chapter of the main textbook, multiple-choice quizzes, true/false quizzes and internet exercises. The
third website will be created for each tutorial group. Students of the same tutorial group will be able to
have online forum discussions and information sharing with members of their class.

Course Instructors

Office Email
Instructor Phone
Location
Adjunct Assoc Prof. Lau Yin Kheng
S3-01C-88 6790 5694 yklau@ntu.edu.sg
(Coordinator)
Ms Anne Chia (PT) (Co-lecturer) annechia@ntu.edu.sg

Li Bing LI0028NG@ntu.edu.sg

Wang Ying, Elaine WANG0317@ ntu.edu.sg

Zhou Bo ZHOU0105@ntu.edu.sg

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Proposed Weekly Schedule
Lecture No./ Lecture Topics
Week
Commencing
30 Aug.
1 Introduction to Accounting
6 Sep. 1. Course requirements &
administrative/housekeeping matters
2. Importance of accounting
3. The objectives and characteristics of :
Financial accounting information and
Management accounting information
4. The sources of integrity of accounting
information
5. Forms of business organizations
6. The Accounting Framework, Financial
Statements and Some Accounting
Concepts
2 The Accounting Cycle
13 Sep. 1. Capturing economic events
2. Make adjustment entries
Accruals
Deferrals
Prepare adjusted trial balance
3. Prepare financial statements and close
books
4. Ethics, fraud and corporate governance
Learning Objectives Readings/Activity
No classes (Orientation for Year 1)
1. To provide an overview of MB101 and to discuss course WHB, Chapters 1, 2
requirements.
2. To understand the importance of accounting information in No tutorial for this week
making economic decisions.
3. To understand the difference between financial and management
accounting information and their uses.
4. To know the elements of external and internal financial reporting
that creates integrity in the reported information.
5. To know the different types of business organizations.
6. To understand the nature and general purpose of financial
statements and have an overview of the accounting concepts
underlying the preparation of these financial statements.
7. To understand how certain business transactions affect the
elements of the accounting equation and how these statements
relate to each other.
1. To understand the steps in the accounting cycle from source WHB, Chapters 3, 4, 5
documents to adjusting and closing activities.
2. To understand the double entry accounting system. Getting to know one
3. To understand the purpose of adjusting entries and the another and briefing on
application of the accounting period, realization, matching, group presentation and
materiality and accrual accounting concepts. class participation
Discuss use of MB101
Accounting Learning
Centre
Tutorial No. 1
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 3 Financial Statements: 1. To identify the difference between current and non-current WHB, Chapter 7 & 8
20 Sep. assets.
Accounting and Presentation of Balance Sheet 2. To define financial assets and inventories and their valuation in Tutorial No. 2
Items: the balance sheet.
1. Current assets
Financial assets which include cash and
cash equivalents, short-term investments
and receivables
Inventories

4 Financial Statements: 1. To learn to account for the cost, the use and the disposal of non- WHB, Chapters 9, 10 &
27 Sep. Accounting and Presentation of Balance Sheet current assets, specifically plant assets. 11
Items: 2. To know that plant assets may be revalued (detailed accounting
2. Noncurrent assets will not be taught). Tutorial No. 3
Fixed assets 3. To learn the characteristics of the different types of liabilities and
Intangible assets how they are disclosed in the balance sheet.
3. Liabilities 4. To understand the components of owners’ equity.
Current liabilities 5. To know the difference between common stock and preferred
Noncurrent liabilities stock.
Contingent liabilities 6. To know what is treasury stock.
4. Owners’ equity
Share capital and reserves
o Common stock (ordinary shares)
o Preferred stock (preference shares)
Treasury stock

5 Financial Statements
4 Oct. 1. The Statement of Comprehensive Income
2. The Statement of Changes in Equity
3. The Cash Flow Statement
1. To understand the major elements of the statements of WHB, Chapter 12 & 13
comprehensive income and the statement of changes in equity.
2. To understand the effect of operating, investing and financing Tutorial No. 4
activities of the firm on its cash flow.
3. To highlight the difference between the accrual basis of
accounting and cash basis by illustrating with the preparation of
cash flow from operations using the indirect method and in
accordance with FRS 7.

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 6 Interpretation and Analysis of Financial 1. To explain the uses of dollar and percentage changes, trend WHB, Chapters 7, 8, 10,
11 Oct. Statements percentages, component percentages, and ratios. 12 & 14
Analytical techniques 2. To compute ratios widely used in financial statement analysis and
Financial ratio analysis explain the significance of each. Tutorial No. 5
3. To analyze financial statements from the view point of common
stockholders, creditors, and others.

7 Managerial Accounting Fundamentals 1. To understand the principles guiding the design of management WHB, Chapter 16, 17,
18 Oct. Management accounting systems accounting systems. 18 & 20
(Please framework 2. To understand the components of manufacturing costs and how
note Manufacturing costs and costs flow product costs flow in an organization. Self-study Tutorial No. 6
lecture 7 is Costs behaviour 3. To understand the different cost behaviours. is to be completed in
an e- Contemporary Managerial Accounting Tools 4. To understand process costing and job order costing. assigned groups and
lecture to Process and job costing submitted to your tutor
be posted via discussion board
on 18 before 22 Oct.
Oct.)

Recess
18 October 2010 to 24 October 2010

8 Contemporary Managerial Accounting Tools
25 Oct. Cost allocation
o Traditional costing system
o Activity based costing system (ABC)
Cost-volume-profit analysis
1. To understand how product costs are allocated using the WHB, Chapter 17, 18 & 20
traditional and ABC costing systems.
2. To understand how ABC overcome the limitations of the Online Quiz – during
traditional costing system and improves decision making. tutorial time
3. To understand the relationship between cost, volume and Location: IT labs at S4-B1
profit. Coverage: Lectures 1 to 7
4. To learn how to perform cost-volume-profit analysis. & tutorials 1 to 6

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 9 Tools for Planning and Control 1. To understand the role of cost information and their relevance WHB, Chapter 21
1 Nov. Relevant cost information in decision making.
Incremental cost analysis and decision 2. To learn to use incremental analysis in common business Tutorial No. 7
making decision making.
3. To learn to evaluate decisions using quantitative and
qualitative factors.

10 Tools for Planning and Control 1. To understand the purposes and benefits of budgeting. WHB, Chapter 23
8 Nov. Strategy and budgeting. 2. To understand the process and approaches to developing the
The master budget and behavioural master budgets. Tutorial No. 8
implications. 3. To learn the preparation of flexible budgets and its uses.
Flexible budgeting. 4. To understand the behavioral impacts of budgets.

11 Contemporary Managerial Accounting Tools 1. To define the value chain and its basic components. WHB, Chapter 19
15 Nov. Value chain 2. To distinguish between non-value added and value added
Procedures to assess resource use activities. Tutorial No. 9
across value chain. 3. To understand the various procedures to assess resource use
o Activity-based management and across value chain
costing
o Target costing
o Just-in-time management
o Total quality management

12 Cost Analysis and Performance Evaluation
22 Nov. Responsibility accounting
Rewarding business performance
1. To distinguish among cost centres, profit centres and WHB, Chapter 22 & 25
investment centres.
2. To explain the need for responsibility centre information and Tutorial No. 10
describe a responsibility accounting system.
3. To prepare an income statement showing contribution margin
and responsibility margin.
4. To distinguish between traceable and common fixed costs.
5. To understand the usefulness of the contribution margin and
responsibility margin in making short-term and long-term
decisions.

29 Nov. Tutorial No. 11

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 Final Examination
Wednesday, 15 December 2010 at 5.00 pm