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LESSON PLANS
ACCOUNTING

CONTENTS

Total Instructional Time
Lesson: T-Accounts, Debits & Credits
Lesson: Using a General Journal
Lesson: The General Ledger
Lesson: Worksheet & the Accounting Cycle
Lesson: Managerial Accounting I
Lesson: Managerial Accounting II
Lesson: Ratio Analysis
Lesson: Forensic Accounting Challenge I
Lesson: Forensic Accounting Challenge II
Lesson: Forensic Accounting Challenge III
Lesson: Run Your Own Business
Lesson: Export to Quickbooks
Lesson: Multiplayer Competition

Total Instructional Time

The instructional time for ACCOUNTING ranges from 13 hours (simulation exercises only) to 24 hours (simulation exercises, readings assignments, reading quizzes, and math quizzes). You can configure your course to include or exclude reading assignments (3.7 hours), reading quizzes (1.8 hours) and math quizzes (5.5 hours). For detailed instructions on how to configure your course, see Getting Started under Instructor Documentation on your instructor page.

Prior to beginning work with ACCOUNTING, students should sign in to their account at vb.KnowledgeMatters.com and watch the Tutorial video.

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Lesson: T-Accounts, Debits & Credits

tAccounts

DESCRIPTION

In this lesson, students explore the application of debits and credits to accounts in their business. They use T-accounts to learn about normal balances in asset, liability, and owner’s equity accounts. Students start by examining source documents such as customer invoices. Then they match transactions to appropriate accounts and decide whether to debit or credit the accounts. Students also review copies of paid checks and decide how to enter those transactions. Finally, students run their business forward in time, generating new source documents. They enter those transactions in T-accounts and receive dynamic feedback as cells turn red or green depending on the correctness of entries.

LEARNING OBJECTIVES

  • Understand the accounting equation
  • Understand the concept and use of T-accounts
  • Identify asset, liability, and owner’s equity accounts
  • Identify normal balances in a variety of accounts
  • Analyze source documents
  • Assign transactions to accounts
  • Correctly debit or credit accounts for normal business transactions

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 25 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Using a General Journal

journal

DESCRIPTION

In this lesson, students learn that a journal is a sequential recording of all transactions in a business. They next explore the format of a journal with its corresponding debit and credit entries. Students learn how journal entries are tied back to source documents through entries in the journal. Students then move on to reviewing source documents, such as invoices for sales on account and purchases of parts that will be placed in inventory. They learn how to properly enter journal transactions for these somewhat more complex transactions. Students then run the simulation forward for a week and can turn on the Animate Transaction option, which shows transactions flying out of the business in the journal. The final day of transactions is not journaled, and students finish by making correct entries for that day. As in the previous lesson, they receive visual (red/green) feedback as they make their entries.

LEARNING OBJECTIVES

  • Understand the role of the journal versus T accounts
  • Understand the business meaning of different transactions in the journal
  • Tie journal transactions to source documents
  • Enter correct transactions for sales on account
  • Enter correct transactions for purchases of inventory parts
  • Correctly enter a day’s worth of transactions

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 25 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: The General Ledger

gl

DESCRIPTION

In this lesson, students learn the role of the general ledger in grouping transactions by account and maintaining a running balance of each account. They begin by examining the chart of accounts for their business. They select their sales account and learn the difference between temporary accounts and permanent accounts. Students identify both ending balances and balances at specific points in time. Students then learn how account numbers tie postings from the general journal to the general ledger. Next, students review a bank statement and their cash account balance to prove cash. Finally, students notice that while their cash balance oscillates up and down, there is a steady decline in cash over time. Instructions point them to the business cause of the decline, and they take action to reverse the decline and return their cash balance to a specific goal amount.

LEARNING OBJECTIVES

  • Understand what a chart of accounts is
  • Understand how a general ledger differs from a journal and why it is valuable
  • Use a general ledger to maintain running balances in accounts
  • Identify how journal postings are tied to the general ledger
  • Prove cash by comparing a bank statement to a cash account in the general ledger
  • Identify a business issue through analysis of general ledger accounts
  • Solve a business problem and see the results of action through general ledger accounts

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Worksheet & the Accounting Cycle

worksheet

DESCRIPTION

In this lesson, students learn how a worksheet organizes account balances from the general ledger into meaningful business data. They begin by looking at how balance sheet accounts and income statement accounts are grouped into a trial balance column and how debits and credits must add to a balance at the bottom of the worksheet. They then explore the role of adjusting entries in recognizing expenses such as insurance costs and part used during the accounting period. Next, they bring account balances from income statement accounts together with adjusting entries to get an adjusted trial balance and compute net income. The net income is applied correctly to balance sheet accounts to give a final, equal balance of assets and liabilities plus owner's equity. Finally, students run forward in time for one month and then complete the worksheet for the next month. As in previous lessons, they get visual feedback as correct entries turn green and incorrect entries turn red.

LEARNING OBJECTIVES

  • Understand the role of the worksheet in organizing account balances for business decisions
  • Explain the concepts of trial balance, adjusting entries, and adjusted trial balance
  • Compute net income from a worksheet
  • Apply net income (or loss) correctly to keep the balance sheet in balance
  • Complete a partially completed monthly worksheet

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Managerial Accounting I

managerial1

DESCRIPTION

In this lesson, students take on the role of a financial consultant brought in to help a struggling business. They dig deep into the business by learning how the details in source documents can be combined with summary information in accounting documents to make more-informed decisions. They begin by reviewing a worksheet for the last month and discovering a net loss. Transaction data shows that the business is making a lot of sales. By analyzing time sheets and pay records, they discover that the business owners have mispriced a number of services and are losing money on them. Finally, students are charged to set more appropriate prices and restore the business to profitability.

LEARNING OBJECTIVES

  • Read a worksheet for actionable information
  • Analyze time sheets
  • Read and extract information from pay records
  • Use math to combine source information and estimate service-level profitability
  • Make decisions about pricing based on overall accounting information and source document details

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Managerial Accounting II

managerial2

DESCRIPTION

In this lesson, students again take on the role of an accounting advisor to a company. They are brought in by a company in a very busy city that has tremendous potential but is underperforming. They review the income statement and discover lower-than-expected revenue. By exploring individual expenses on the income statement, they find that wage expenses are well below estimates of similar companies in the area. They then look at source documents to assess the output of employees and conclude that low wages may be leading to less-skilled employees who take longer to complete jobs. They raise wages to attract more-skilled employees, and output increases substantially. Finally, students are challenged to meet a profit goal by adjusting all wages at the business.

LEARNING OBJECTIVES

  • Read an income statement to assess business performance
  • Understand individual income statement line items and their meanings
  • Use source documents to assess productivity
  • Create hypotheses of why performance is suboptimal and how it could be fixed
  • Test hypotheses
  • Use test results to improve a business

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Ratio Analysis

ratioAnalysis

DESCRIPTION

In this lesson, students are introduced to the concept of ratio analysis. They learn that the relationship between two numbers can often tell you more than either of the numbers by themselves. They begin by taking a look at several liquidity ratios. They classify their assets and liabilities as current versus long-term and compute their current ratio. They also compute the more stringent quick ratio. Students then turn to the balance sheet and look at return on sales. They discover that their return on sales is low because of an expense ratio that is unusually high. Finally, students are challenged to reduce the high expense to meet a return on sales goal.

LEARNING OBJECTIVES

  • Explain what ratio analysis is
  • Give examples of liquidity ratios and explain how to compute them
  • Explain and compute return on sales
  • Evaluate what a good ratio is for the above examples
  • Use information from ratio analysis to improve business performance

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 45 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Forensic Accounting Challenge I

forensic1

DESCRIPTION

Note: The description of the three Forensic Accounting lessons is the same and is a general description. Exact details (answers) are not given, because these descriptions are publicly available and students could use them as a cheat.

In the three forensic accounting lessons, students are introduced to the concepts of errors and fraud in a business. In each lesson, they are challenged to find two instances of gross error or fraud at an operating business. They can run time forward and observe the business operating. Students can adjust the speed down to watch details or up to produce more time periods of accounting information. Types of problems that students may encounter include employee theft, improper withdrawals, inappropriate accounting entries, unauthorized payments, and so on. Students use visual observation, review of accounting documents, and review of source documents to discover the problems. Each of the three lessons includes different improprieties for students to find.

LEARNING OBJECTIVES

  • Understand the role of forensic accounting
  • Identify the types of fraud and errors that a business may encounter
  • Use visual observation to uncover fraud
  • Review accounting documents for errors or inappropriate entries
  • Review source documents for conflicts
  • Find specific instances of fraud or accounting errors in a business

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Forensic Accounting Challenge II

forensic2

DESCRIPTION

Note: The description of the three Forensic Accounting lessons is the same and is a general description. Exact details (answers) are not given, because these descriptions are publicly availability, and students could use them as a cheat.

In the three forensic accounting lessons, students are introduced to the concepts of errors and fraud in a business. In each lesson, they are challenged to find two instances of gross error or fraud at an operating business. They can run time forward and observe the business operating. Students can adjust the speed down to watch details or up to produce more time periods of accounting information. Types of problems that students may encounter include employee theft, improper withdrawals, inappropriate accounting entries, unauthorized payments, and so on. Students use visual observation, review of accounting documents, and review of source documents to discover the problems. Each of the three lessons includes different improprieties for students to find.

LEARNING OBJECTIVES

  • Understand the role of forensic accounting
  • Identify the types of fraud and errors that a business may encounter
  • Use visual observation to uncover fraud
  • Review accounting documents for errors or inappropriate entries
  • Review source documents for conflicts
  • Find specific instances of fraud or accounting errors in a business

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Forensic Accounting Challenge III

forensic3

DESCRIPTION

Note: The description of the three Forensic Accounting lessons is the same and is a general description. Exact details (answers) are not given, because these descriptions are publicly availability, and students could use them as a cheat.

In the three forensic accounting lessons, students are introduced to the concepts of errors and fraud in a business. In each lesson, they are challenged to find two instances of gross error or fraud at an operating business. They can run time forward and observe the business operating. Students can adjust the speed down to watch details or up to produce more time periods of accounting information. Types of problems that students may encounter include employee theft, improper withdrawals, inappropriate accounting entries, unauthorized payments, and so on. Students use visual observation, review of accounting documents, and review of source documents to discover the problems. Each of the three lessons includes different improprieties for students to find.

LEARNING OBJECTIVES

  • Understand the role of forensic accounting
  • Identify the types of fraud and errors that a business may encounter
  • Use visual observation to uncover fraud
  • Review accounting documents for errors or inappropriate entries
  • Review source documents for conflicts
  • Find specific instances of fraud or accounting errors in a business

TIME

Reading: 20 minutes (optional)
Reading Quiz: 10 minutes (optional)
Math Quiz: 30 minutes (optional)
Simulation Exercise: 30 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students complete the reading assignment (optional).
Students take the reading quiz (optional).
Students take the math quiz (optional).
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Run Your Own Business

project

DESCRIPTION

In this lesson, students have full control of their computer repair business. They can change prices, wages, layout, and advertising levels. They have access to T-account information, a general journal, general ledger, worksheets, income statements, and balance sheets. In addition, they have access to time sheets, pay records, bank statements, customer invoices, and paid checks. They can also see comments from customers. Students are challenged to reach a specific profit goal. By default, this project is set up as a competition so students in the class can see the scores of other students. This can be turned off by the instructor. When students reach the goal, they can elect to continue for competitive purposes.

LEARNING OBJECTIVES

  • Use accounting information to identify business issues and correct them
  • Use source documents to dig deep, allowing further optimization of the business
  • Measure results and react based on accounting documents
  • Make decisions about pricing, wages, spending, and physical plant based on financial information
  • Understand the competitive nature of business and the profit motive

TIME

Simulation Exercise: 120 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Export to Quickbooks

qbexport

DESCRIPTION

In this optional lesson, students learn to use Quickbooks to analyze a business that they actually run. Students run their computer repair business for three simulated months and are free to make all business decisions. However, they have no access to any accounting documents. At the end of the three months, they download an empty Quickbooks .QBW file and a Quickbooks .IIF data file containing all their transactions. They are instructed on how to import the file into Quickbooks and are then asked a series of questions about company performance, sales, sales by item, customers, and vendors. Within their simulation, the correct answers for their particular business are downloaded and presented among multiple-choice answers. Additionally, students can use Quickbooks to present on their business operations using graphs and tables. If classes are not currently using Quickbooks, Intuit may provide a free trial version.

LEARNING OBJECTIVES

  • Understand how external data can be imported into leading accounting packages
  • Be able to import transaction data, understand the chart of accounts, and access the data
  • Use varying reports to analyze company performance, sales, vendors, and customers
  • Answer questions about their own business performance and decisions based on tools available in Quickbooks
  • Present conclusions about their business based on Quickbooks analysis

TIME

Simulation Exercise: 90 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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Lesson: Multiplayer Competition

multiplayer

DESCRIPTION

In this project, students go head-to-head in competition. Students each run a computer repair business that they get to name. Students’ business choices affect whether customers choose to go to their business or to a competitor. A weekly graph of market share gives students quick feedback on how they are doing competitively. All competing students’ profits are displayed on a scoreboard within the simulation. The scoreboard updates in real time with new players appearing as they join the session.

LEARNING OBJECTIVES

  • Understand the fluid, competitive nature of business
  • Respond dynamically to challenges brought on by other competitors
  • Effectively compete in a realistic business setting and achieve a profit
  • React to surprises and have contingency plans in place

TIME

Simulation Exercise: 180 minutes

PROCEDURE

Students sign in to ACCOUNTING at vb.KnowledgeMatters.com.
Students click Run SIM and follow the lesson instructions.
Student progress and grades may be tracked from the Instructor page.
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