Accounts Receivable

Congratulations! We have now completed our review of the Cash and Risk Management functions, culminating in last week’s classroom discussion of a television episode from The Office. In that episode, the office accountants struggled to function as a team in order to investigate the theft of $3,000 in company cash.

We relied on the Risk Management Cube paradigm to structure our own approach to this challenge. We also discussed how the Giving Voice To Values self-reflection approach can prepare professionals to function as an investigatory team.

Our first quiz of the upcoming week, at the beginning of Tuesday’s session, will cover this material. Then we’ll shift our focus to the Accounts Receivable function.

Yes, we’re moving left-to-right across our Value Chart of Accounts! And Accounts Receivable is “next up,” so to speak.

On Tuesday, we’ll discuss the general terms and concepts that are relevant to Accounts Receivable. These appear in the PDF document entitled Chapter 08 Notes; you can find it in the Documents folder on our course blog page.

On Thursday, we’ll take a quiz regarding these terms and concepts. And then we’ll review each quantitative row of the Value Chart.

Oh, yes … we’ll continue to make progress with our Term Project activity as well! I have uploaded a PDF document entitled Mike’s Sample to each team’s Box, Google Drive, or Microsoft OneDrive folder.

We’ll work with this document in class on Thursday. And by Monday morning, October 23 at 8:00 am, you’ll delete this sample document and replace it with a brief description of your term project topic.

What will be the format of your description? We’ll discuss our options during class on Thursday. And then I’ll document our plans in next weekend’s blog posting.

As you can see, we’re slowly-but-surely raising the bar on our term project activity. And we are doing likewise with our knowledge of accounting!

P.S. There are no advance reading assignments this week.

Cash and Risk

We’re going to experience another exciting “first” this week! It’s our first assignment of the term project.

No later than Thursday, October 12th at noon, please send me an email message that lists: (a) the names of your team members for your term project, and (b) the online document management platform that you have chosen for your work.

You are welcome to select any professional platform, though I would suggest that you consider:

Box (an independent publicly traded firm)

Drive (Google)

iCloud (Apple)

OneDrive (Microsoft)

When I receive your message, I will establish an online folder on that service, and I will send each member of your team an “invite” to access it. I will then ask you to post a brief description of your project in that folder.

What else shall we accomplish on Thursday?

Let’s “try out” a policy of taking four-question exams at the beginning of each period, with the Thursday exams covering a brief set of concepts, and the Tuesday exams covering a broader set of quantitative material.

This Thursday’s exam will cover:

(a) The four questions in the blog post entitled Risk Management: Is Rubin to Blame for Citi? You can find the blog post by entering the Documents folder on our blog’s home page and opening the document entitled Cash – Link to Reading Assignment.

(b) The front side of the colorful cube that we reviewed in class last week. You can find it on page 5 of the Executive Summary of a report entitled Enterprise Risk Management – Integrated Framework. That document is also available in our Documents folder; it is saved as a PDF document entitled Cash – Risk Management.

(c) Instead of a brief reading assignment, I am asking you to watch a brief 7 minute video this week! A question about it might appear on our quiz. It is entitled The Accountants: The Books Don’t Balance – The Office US, and it appears on YouTube.

As you can see, we are moving well past the introductory content of the basic accounting model, and well into explorations of interesting applications! And it all begins with our Thursday class. 🙂

Cash

We’ve done it! We’ve now completed our comprehensive review of the accounting model. Next week, we’ll begin our discussion of various applications by focusing on Cash accounts.

But before we do that, we need to schedule our examination on the accounting model. So, at the beginning of our session on Tuesday, we’ll take an eight question exam on our Chapter 03 and 04 Notes handout.

The handout contains a significant amount of material, so we won’t assign any advance readings for the week. And we won’t schedule a quiz for Thursday.

Once we complete Tuesday’s exam, we’ll discuss and finalize a general policy for scheduling quizzes in the future. But let’s take one step at a time … let’s focus on Tuesday’s exam first!

Accrual Entries

This will be another momentous week for us! We will begin to take quizzes at the start of each session, covering the content that we discussed during the previous session, as well as the advance reading assignment (if any) for the current session.

So please be sure to arrive on time! The quizzes will be very brief, and if you arrive late, you might miss them entirely.

This week, we won’t schedule any advance reading assignments, so the quizzes on Tuesday the 26th and Thursday the 28th will only cover the previous session’s material. We’ll begin to assign advance readings during the first week of October.

That’s when we’ll assign our first term project assignment as well. So what will we cover this week … other than the quizzes?

First, we’ll complete our review of the Chapter 03 and 04 Notes handout. And we’ll discuss a special type of transaction that is called an “Accrual Entry.”

Then, if time permits, we’ll begin to work our way across the Value Chart from left to right, and discuss specialized applications for each column. We’ll begin doing so with the Cash column on the far left.

Most importantly, though, this week will be Quiz Week. If you have any questions about the material, please let me know.

Journal Entries and T Accounts

Congratulations on mastering debits and credits last week! This week, we have even more excitement to look forward to …

… we’ll learn about Journal Entries and T Accounts!

And if we really want to push the envelope, we’ll discuss trial balances too. 🙂

This is the first week of the semester that falls after the “add a course” deadline at Providence College, and so we’ll begin to formalize our learning activities. Here is a synopsis of our plans:

1. After completing our review of our Chapter 03 and 04 Notes handout, we’ll dedicate some classroom time to walking through the pages of the first four chapters of the textbook. This activity will either occur on Thursday the 21st or Tuesday the 26th.

2. Our first quiz will occur on Tuesday the 26th. It will cover what we discuss in class during the previous session (i.e. on Thursday the 21st), and the brief reading that is assigned for the current session (i.e. for Tuesday the 26th). Each subsequent session will also feature such a quiz.

3. This Thursday the 21st, please come prepared to verbally describe a potential term project topic. Just two or three sentences will be fine! You are welcome to work with any number of students you wish, and you can welcome students from either section into your group. You are also welcome to work as a group of one.

The topic must be a concept for a for-profit or non-profit business that can be launched from your dorm room or off-campus apartment with minimal start-up funds. It must produce some beneficial social purpose, other than (or in addition to) generating profits.

By the time we reach the last week of September, we’ll be fully immersed in the intellectual content of our course. We’ll be ideally positioned to shift comfortably into a mid-semester frame of mind, having mastered the essential components of the Financial Accounting model.

Debits and Credits

Hello, all! I hope you’re enjoying the weekend. We’ll continue to review the accounting process for Luca’s Cleaning Service this week, and then we’ll proceed to our next case example.

That next example will be a very detailed one, covering bookkeeping practices like Debits and Credits. But let’s take things one step at a time.

First, if you have not yet downloaded a corrected copy of our Chapter 01 and 02 Notes document, please remember to do so. As you may recall, on both sheets of the original version of that document, I accidentally wrote the word “Inventory” on the Income Statement. I’m very sorry about that!

Second, here is the link to Interbrand’s Top 100 Global Brands list and calculation methodology.

Third, please note that there is now a new PDF document on our blog site. It is called Chapter 03 and 04 Notes. There’s no need to worry if you cannot follow it on your own; we’ll review it in class together. But you might wish to glance at it in advance.

By the time we complete our review of that new case, you’ll have a comprehensive understanding of the accounting model. And we’ll be ready to start talking about quizzes and term projects.

Once again, though … let’s take things one step at a time. After all, Luca is still waiting for us to help him summarize his second day of business.  🙂

The Double-Entry System

I hope you’re enjoying the holiday weekend! And, of course, I hope you enjoyed the beginning of the academic year last week.

As you know, we introduced ourselves to the Assets Minus Liabilities Equals Value equation last week, which is the modern double-entry system of accounting that was first codified by Friar Luca Pacioli. That double-entry feature is what helps us to check our work by enabling us to calculate Value via two different methods.

As we discussed, we won’t begin scheduling quizzes or advance reading assignments for another two weeks or so. However, I will distribute a more elaborate e-document version of the brief Cleaning Business example that we reviewed in class last Thursday. So please bring an electronic device to follow along during our next two classes!

I’ll distribute the e-document in PDF format, so any electronic device — laptop, tablet, or phone — should do the trick. You’re welcome to share a device with a friend.

If you have any questions, please let me know. I look forward to continuing our conversation on Tuesday!

Welcome!

If you are reading this message, you have found our course blog page. Welcome to Financial Accounting 203!

We’ll use this blog to coordinate our learning activities. Please remember to return here every week.