Financial Accounting 12 - Financial Data

PRESCRIBED LEARNING OUTCOMES

It is expected that students will:

• prepare general journal entries using GAAP
• demonstrate proficiency in setting up and posting to a general ledger
• record adjusting and closing entries and a post-closing trial balance
• use journal entries to record the purchase and sale of goods
• evaluate internal control procedures used for inventory and cash
• describe appropriate methods to report petty cash
• demonstrate standard methods to reconcile bank statements
• describe the use of the allowance method and the direct write-off method of accounting for uncollectable accounts
• describe the most common methods for calculating depreciation and changes in assets

SUGGESTED INSTRUCTIONAL STRATEGIES

• Use sample data to give students hands-on experience with a variety of industry-standard electronic accounting packages. Have each student create accounts, record purchases and sales in a general journal, and prepare a trial balance.
• Ask students to use standard procedures such as journalizing and posting entries from given data. Then have them discuss with partners their responses to standard problems and attempt to agree on the best responses.
• Suggest that students work in small groups to analyse and evaluate the procedures used to control the inventory and cash of a school store or sports club. Then have each group prepare a report to the store or club manager summarizing its evaluation and making recommendations for any changes needed.
• Form groups and assign each group to research and report on one method of calculating depreciation and changes in assets. Ask each student to describe to the rest of the group the accounting entries needed to report increases and decreases in capital value.
• To collect information on managing accounts receivable, invite students to interview a variety of local business managers about their companies' credit policies, collections, and accounting for bad debts. Have students report to the class on how to create accounting entries for the main methods used (including at least the allowance and direct write-off methods). Then ask them to collect credit contracts from local businesses and create a display to analyse each method's main features and effectiveness.

SUGGESTED ASSESSMENT STRATEGIES

• Provide students with accounting ledgers used in a business and have them create accounts for balance sheet items. Note evidence that they:
  • identify assets, liabilities, and equity
  • differentiate between asset classifications
  • differentiate between liability classifications
  • record transactions using the double-entry accounting system
• Ask students to post to general ledgers from special journals. Record evidence that students:
  • recognize the steps involved in the accounting cycle
  • classify accounts accurately
  • match the debit and credit portions of a transaction
  • understand the relationship between business transactions and business records
• Discuss with students the concepts and principles of internal control. Then ask them to form groups and determine ways to prevent fraud in cash transactions. Look for evidence that they:
  • understand the principles of internal control procedures
  • recognize the difference between employee fraud, theft, and errors
  • identify appropriate methods to reduce fraud, theft, and errors
• As students present depreciation calculation methods, note the extent to which they:
  • ensure that calculations are accurate and complete
  • describe each method by explaining the results of the calculations
  • recognize the effect that the different methods will have on the balance sheet and income statement

• Accounting: The Basis for Business Decisions, Seventh Edition
• Financial Accounting, Canadian Third Edition

• Designing an Accounting System using ACCPAC Simply Accounting
• Whitemoose Creek Farms: A Business Simulation

Previous Page Next Page

  BC Ministry of Education Home Page