# Readings

In addition to the bibliography of readings used in the course, see the readings by session below.

## Required Text

Pratt, J. Financial Accounting in an Economic Context. 5th ed. Cincinnati, Ohio: John Wiley & Sons, 2003. ISBN: 0470000465. (Hereafter cited as "Pratt")

## Required Case Packet

Includes supplemental readings and Harvard Business School cases. (Hereafter cited as "CP")

Required case studies are:

Wilson, David A. "Chemalite, Inc." Boston, MA: Harvard Business School, 1976. Case No. 9-177-078.

Bruns, William J., Jr. and Susan S. Harmeling. "Circuit City Stores, Inc. (A)." Boston, MA: Harvard Business School, 1990. Case No. 9-191-086, 1-11.

Bruns, William J., Jr. and Eric J. Petro. "Depreciation at Delta and Pan Am." Boston, MA: Harvard Business School, 1989. Case No. 9-190-035.

Bruns, William J., Jr. and Susan S. Harmeling. "Accounting for Frequent Fliers." Boston, MA: Harvard Business School, 1991. Case No. 9-192-040.

Bruns, William J., Jr. "Brief Introduction to Cost Accounting." Boston, MA: Harvard Business School, 1991. Case No. 9-192-068.

Bruns, William J., Jr. "Activity Accounting - Another Way to Measure Costs." Boston, MA: Harvard Business School, 1992. Case No. 9-193-044.

Cooper, Robin, Peter B. B. Turney, and Christopher D. Ittner. "Seligram, Inc. Electronic Testing Operations." Boston, MA: Harvard Business School, 1988. Case No. 9-189-084.

Merchant, Kenneth A. and Lourdes Ferreira. "Scovill, Inc. NuTone Housing Group." Boston, MA: Harvard Business School, 1985. Case No. 9-186-136.

Kerr, Steven. "An Academy Classic: On the Folly of Rewarding A, While Hoping for B. (1992)" Academy of Management Executive 9, no. 1 (1995).

Bruns, William J., Jr. "Destin Brass." Boston, MA: Harvard Business School, 1989. Case No. 9-190-089.

## Supplementary Texts

Stickney, C., and R. Weil. Financial Accounting: An Introduction to Concepts, Methods, and Uses. 8th ed. Fort Worth: The Dryden Press, 1997. ISBN: 9780030182686.

Bazley, J. S., L. A. Nikolai, and H. B. Grove. Financial Accounting: Concepts and Uses. 3rd ed. Cincinnati, Ohio: South-Western College Publishers, 1995. ISBN: 0538839228.

Hoskin, R. Financial Accounting: A User Perspective. 2nd ed. Toronto: John Wiley & Sons, 1997. ISBN: 0471172359.

Kieso, D., and J. Weygandt. Intermediate Accounting. 9th ed. New York: John Wiley & Sons, 1998. ISBN: 0471641839.

## Readings by Session

Note on text problems: "Do" are problems that will help you prepare for class; but they do not have to be submitted. "Opt" are problems that you could optionally do if you want more material to study.

LEC # | TOPICS | READINGS
--- | --- | ---
1 | Overview of the course, Administrative matters, Discussion of Accounting Framework | Pratt: skim Ch. 1, incl. Appendix 1A
2 | The Balance Sheet and the Recording of Transactions | Pratt: Ch. 2 and 3, skim Ch. 5 Do: P2-1, E3-3 Opt: P2-3, P2-4, P2-9
3 | The Income Statement and Principles of Accrual Accounting | Pratt: Ch. 2 and 3, skim Ch. 3 Do: P2-2, E2-4 Opt: E2-12, ID2-7
4 | The Income Statement and Principles of Accrual Accounting (cont.) | Pratt: Ch. 3 and 4, skim Appendix 4A Do: P3-7, E4-19, E4-2 Opt: E4-5, E4-16
5 | The Accounting Process | Case: Chemalite, Inc.
6 | Revenue Recognition | Pratt: Ch. 3 (pp. 83-85) and Ch. 6 Do: E6-6, E6-8 Opt: P6-7
7 | Revenue Recognition (cont.) | Case: Circuit City Pratt: Ch. 6 Do: P6-3, P6-4 Opt: P6-10
8 | Inventory/Cost of Goods Sold | Pratt: Ch. 7 Do: P7-4, P7-9 Opt: P7-6
9 | Statement of Cash Flow | Pratt: Ch. 14 Do: P14-2, E14-8 Opt: E14-7
10 | More on the Statement of Cash Flows/Exam Review | Do: E14-9, E14-10
11 | First Exam |
12 | Long-term Assets/Depreciation (Deferred Taxes) | Pratt: Ch. 9, incl. App. 9A and 10B, pp. 439-442 Do: E9-5, E9-18, E10-11 Opt: ID9-7, BE9-3, P10-8
13 | Matching Principle for PP&E | Case: Depreciation at Delta and Pan Am
14 | Marketable Securities (Deferred Taxes) | Pratt: Ch. 8 (through p. 332) Do: E8-2, E8-5, P8-6 Opt: P8-5
15 | Marketable Securities, Time Value of Money | Pratt: Appendix B Do: EB-11, EB-14
16 | Long Term Debt | Pratt: Ch. 11 through p. 476 Appendix 11A Do: E11-5, E11-9 Opt: E11-3, E11-18
17 | Leases and Off-Balance Sheet Financing | Pratt: Ch. 11 (p. 483 to end) Do: P11-13, P11-14 Opt: ID11-6
18 | Current Liabilities and Contingencies | Case: Accounting for Frequent Fliers Pratt: Ch. 10 Do: E10-9, P10-2 Opt: P10-5, ID10-1, ID10-3
19 | Midterm 2 Review |
20 | Second Exam |
21 | Intangibles and Business Combinations | Pratt: Ch. 8, pp. 332-339 Do: P8-10, P8-14
22 | Introduction to Cost Concepts | CP: A Brief Introduction to Cost Accounting; Activity Accounting: Another Way to Measure Costs; On the Folly of Rewarding A, While Hoping for B
23 | Indirect Allocation of Costs, Destin Brass | Case: Destin Brass Products
24 | ABC, Destin Brass | Case: Destin Brass Products
25 | Managerial Accounting Wrap-up, Seligram Discussion | Case: Seligram Inc. Electronic Testing Operations
26 | Course Review/Wrap-up |
| Final Exam |