Accounting 12 - Analysis

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• analyse financial statements
• analyse statements of earnings for various businesses
• describe ways in which financial data are used
• draw conclusions based on differences between budgeted and actual transactions

SUGGESTED INSTRUCTIONAL STRATEGIES

• Challenge students to analyse various financial statements and draw conclusions from their analyses. Students could present their analyses in various formats. For example:
  • Students find and compare earnings statements for a variety of companies, then they write reports explaining the differences between the various statements.
  • Using financial statements for two similar companies, students determine the financial strengths and weaknesses of each and discuss which company would be the better investment.
  • Using a business budget and a record of actual transactions over a period of time, students analyse any differences and discuss, in small groups, the significance of any variances.
• Demonstrate for students the different ways that accountants, accounting clerks, bookkeepers, and other accounting professionals analyse and use financial statements and other reports. Invite the class to arrange a panel discussion with a variety of accounting professionals on how they use financial reports. Ask students to question the panelists and then summarize the key points of the discussion.
• Suggest that students in groups examine the different reporting needs of proprietorships, partnerships, and corporations by comparing samples of the financial reports that each produces. Have them list and give reasons for any differences.

SUGGESTED ASSESSMENT STRATEGIES

• As students complete accounting activities throughout the course, note the extent to which they can:
  • explain the processes they perform
  • rationalize or make supporting statements about the financial positions reflected in the data
  • compare one set of records with another
  • justify the selection of processes and records they use to complete their analyses
• As students compare manual and computerized accounting systems, note whether they can identify the key factors to consider when deciding on the most appropriate system for a business, including the relationships among the following:
  • size of business
  • complexity of record keeping
  • number of staff
  • division of labour
  • cost of set-up
  • expertise of staff

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

• Designing an Accounting System using ACCPAC Simply Accounting

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