Accounting 12 - Financial Data

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• compare financial reporting used in single proprietorships, partnerships, and corporations
• prepare basic payroll, remittances, and required payroll tax documents
• assess, choose, and justify appropriate inventory accounting systems for a business
• apply inventory accounting methods using software
• compare periodic and perpetual inventory methods
• explain the use of sales journals, purchase journals, cash receipt journals, and cash payment journals in merchandising businesses
• demonstrate proficiency in using accounts receivable, accounts payable, and merchandise accounting procedures
• demonstrate proficiency in using cash control procedures
• defend the need for security systems, data protection, and backup for accounting records

SUGGESTED INSTRUCTIONAL STRATEGIES

• Invite the class to research factors that affect the financial reporting of single proprietorships, partnerships, and corporations. Have students create graphic tables to make comparisons and summarize their findings.
• As a class, review the detailed instructions for completing remittance forms given in Revenue Canada publications. Then ask students to use payroll data to fill in T4 slips and remittance forms, identify where the amounts in the forms originate, and explain what each entry means.
• Ask students to use both perpetual and periodic inventory methods and compare them. Have them record the value of a business's inventory using both methods. Then discuss when the use of each is most appropriate.
• Have students set up accounts receivable and accounts payable ledgers for a merchandising business. Then ask each student to create a poster explaining merchandise accounting transactions (e.g., the relationships among accounts receivable and payable ledgers, a general ledger control account, a balance sheet, and an accounts receivable or payable schedule).
• Use a case study to illustrate accounting problems, such as inadequate cash management. Invite students to identify and use the elements of effective cash management (e.g., an annual cash budget, control listing, bank reconciliation) to solve the problems.
• Discuss how the Internet can be used to obtain information on current accounting problems such as data security. Have the class list questions on data security and then research answers using e-mail and World Wide Web sites.
• Ask students to classify transactions into various types and then develop special journals to generate specific item totals. Discuss reasons why the use of special journals might lead to the use of subsidiary ledgers.

SUGGESTED ASSESSMENT STRATEGIES

• Provide students with numerous opportunities to record, classify, and summarize data using manual and computerized methods. Observe as they work and note the extent to which they:
  • select the appropriate accounts
  • can explain the process
  • can locate their own errors when they don't achieve a balance
  • provide accurate advice to others with related problems
• Have students prepare budgets for a small single proprietorship and a large incorporated merchandising business. As they compare the financial statements for the two businesses, look for evidence that they can:
  • explain similarities and differences in how the two businesses use financial statements
  • identify the different accounting procedures used in proprietorships and incorporated businesses
• As students discuss perpetual and periodic inventory methods, look for evidence that they are able to:
  • explain similarities and differences in the methods
  • identify the method most appropriate for different merchandising situations
  • explain how each inventory method affects management's ability to plan and make decisions
• Have students compare inventory evaluation methods and recommend the most appropriate method for specific businesses. Look for evidence that they:
  • understand the impact of each method on the overall business
  • acknowledge the income tax considerations
  • recognize the relationship between the accounting method and the actual flow of goods

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

• Designing an Accounting System using ACCPAC Simply Accounting

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