Accounting 11 - Financial Data

This sub-organizer contains the following sections:
Prescribed Learning Outcomes
Suggested Instructional Strategies
Suggested Assessment Strategies
Recommended Learning Resources

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• differentiate between various source documents
• demonstrate skill in recording a variety of transactions in a general journal
• demonstrate proficiency in using the double-entry accounting system
• demonstrate proficiency in setting up and posting to a ledger
• use software to create financial statements
• use a variety of special journals relevant to a service business
• develop reports based on special journals

SUGGESTED INSTRUCTIONAL STRATEGIES

Accounting is the collecting, recording, summarizing, and reporting of financial data. Students use industry-standard methods to learn the basic procedures used throughout the accounting cycle.

• Have students use a variety of hands-on techniques to learn how to complete basic accounting transactions. For example:
  • Students identify and complete various source documents for a business (e.g., cheques, sales, cash receipts, invoices). They explain the purposes for which each is used, journalize, and post appropriate entries.
  • Students use models to manually set up double-entry accounting systems for fictitious companies. They design source documents, complete several transactions, and journalize them.
  • Using industry-standard software, students journalize and post transactions to general journals for service businesses.
  • Students make appropriate closing entries and entries to accounts requiring adjusting and explain their effects.

• Form groups of three, with group members representing an accounts receivable clerk, an accounts payable clerk, and a general ledger clerk. Ask groups to discuss their record-keeping requirements and to design and set up general, accounts receivable, and accounts payable ledgers using industry-standard software.
• Ask students to work in small groups to interview the business manager of a service business in order to find out how and why the company controls accounts payable and accounts receivable. Have each group investigate how the business establishes customer credit, sets time limits, charges interest, and buys on credit. Ask groups to report to other groups and create ledgers suitable for the businesses they study.
• Have each student set up accounts for a service business. Discuss the need for special journals and have students design journals for the businesses, journalize several entries, and develop reports using appropriate software.

SUGGESTED ASSESSMENT STRATEGIES

As students complete all aspects of the accounting cycle, they demonstrate their understanding of the relationships between the nature of a company and the accounting procedures required.

• Ask students to collect and present a variety of source documents from local businesses. In their presentations, note evidence that they understand:
  • the function of each source document
  • the relationship between the source documents and the accounting entries
  • the relationship between vendors' and customers' use of the same documents
• Form groups and have each group keep manual financial records for a business. As students discuss the responsibilities of each position in the accounting process, note evidence that they understand:
  • why businesses divide duties
  • how people rely on one another's performance of tasks
  • how the need for larger, more complex recording systems evolves as businesses grow
• After groups learn how to keep manual records, have students record the same data using a computerized system. As they compare the two systems, look for understanding of the differences between the two processes by asking questions such as:
  • How does the processing of information differ between a manual and a computerized accounting system?
  • How would you determine an account balance in a manual system? In a computer system? Which is easier?
  • What is the reason for making the transaction entries in each system? Is the logic the same?
  • Is the division of tasks the same in the two ways of recording financial data?
  • Which system gives more reliable information? Why?

Print Materials

• Accounting 1, Fifth Edition
• Principles of Accounting, Second Edition

Multimedia

• Simply Accounting
• Whitemoose Creek Farms: A Business Simulation

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