Accounting 2013 PDF

2012-13 Annual Report: Department of Accounting
1

A. Progress in Meeting Annual Goals.
Our goals and the objectives related to those goals for the 2012-13 academic year were:
1. Improve relationships with CPA firms and area businesses.
a. Establish clear lines of communication and coordination with CACE and with the
School of Business Deans office regarding: the Accounting Career Fair, Businesses
offering co-op positions in Accounting, Businesses on campus to interview for
internships, co-ops or jobs in accounting.
On June 28, 2012, Lawrence Grasso, Paul Mihalek and Monique Durant met with Ken Poppe of
the CACE Center. We established the following procedures for better coordination of activity
regarding student internships, co-ops, career fairs, and entry-level career placements:
Career Fair
Invitations to the Career Fair go out mid- to late August. CACE will share with us a list of
the organizations invited.
We will suggest firms that might be added to that list.
When we meet with members of firms that are interested in hiring our students or
offering internships, we will tell them about the career fair and invite them to
participate, passing contact information on to Cathy Sylvester unless they object to that.
Weekly beginning in September, Monique Durant and Paul Mihalek will get a list of
firms that have accepted or definitely declined. If we have contacts at firms that have
not made a commitment we will contact them and encourage them to participate.
CACE will provide a list of the actual participants in the 2009 and 2010 career fir (as they
already have for 2011) for our records. Going forward, CACE will provide a list of the
firms participating after each Career Fair.
The career fair will be a topic at our first Faculty meeting in the fall. We will encourage
all faculty to encourage their students to attend (students looking for jobs and
internships and even students who may be a year away. Students should dress
professionally (business casual at the very least for those who are a year away) and
bring their resumes.
Accounting Career Fair Participants 2009 2010 2011 2012
Firms and Government Agencies 14 10 10
Employment Agencies 0 1 1
Professional Organizations 3 2 2
Schools and Continuing Ed. (e.g., CPA Review) 2 2 2
Total 19 15 15
Co-ops
Joe Zeoli or another CACE representative will speak to the Accounting society about Co-
ops in a September meeting. [Joe actually spoke to the Accounting Society October 1
st
]

2

We'll be open to having representatives speak briefly in classes (as used to happen) or
alerting students to information about the Co-op program.
CACE will provide us with the list of Co-ops completed by Accounting majors in 2009-10
and 2010-11, as they already have for 2011-12. Going forward, CACE will provide us
with a list of Co-ops completed by Accounting Majors each year.
If in our interactions with businesses, we come across firms interested in offering Co-
ops, we'll invite them to contact Joe Zeoli, or if they're willing, we'll pass on their contact
information to Joe Zeoli.
Internships for Credit
If CACE receives information about any firm interested in offering accounting
internships for credit, they will forward that information to Paul Mihalek and Monique
Durant.
Paul Mihalek will send CACE details and forms related to our Accounting Internship
course, so CACE will have a better understanding of the conditions and terms.
Part-time or Full time Job Offers
CACE and the Accounting Department will immediately share any information we
receive about any part-time or full time job offers, so the listings (including any criteria
specified by the firms) can be posted by CACE and by the Accounting Department on the
Accounting Society Facebook page. Listings will be sent to Cathy Sylvester at CACE, and
to Monique Durant (copying the Department Chair) at the Accounting Department.
b. Establish clear lines of communication and coordination with the School of
Business development officer on visits to accounting firms or accounting
professionals.
So far we have only had informal discussions with Melody Avery, the Major Gifts Associate for
the School of Business regarding visits to accounting firms or to accounting officers at large
corporations. We need to establish a more formal standard notification format to ensure there
are no communications breakdowns.
Another aspect of improving relationships and increasing students professional interactions
with CPA firms, area businesses and accounting professionals is having professionals come
speak to our classes (or have our classes go on site visits) or to the Accounting Society. The AC
421 class has had a factory tour and an on-site presentation by the CFO of Jacobs Vehicle
Systems each of the last two years. In Spring 2013, Paul Solomon organized a bus trip to the
FASB Headquarters in Stamford, CT. We annually host one monthly meeting of the Hartford
Chapter of the IMA on campus. The following table summarizes the speakers at Accounting
Society meetings for the past two years.


3

Accounting Society Speakers 2011-12 2012-13
From CPA firms or Industry 10 7
From professional organizations 3 4
From Schools and Continuing Ed. (e.g., CPA Review) program re 4 5
From employment agencies 1 3
From the VITA program 1 1
From CACE 1 1
Total 20 21
2. Increase student participation in internships and CO-OPS.
a. Identify all students participating in accounting internships for credit, non-credit
internships, and co-operative education placements in accounting each academic
year. Establish clear lines of communication and coordination with CACE and with
the School of Business Deans office to ensure accurate and up-to-date
information.
A formal notification process was established. Assistant Dean Sharon Braverman has been
involved with finding internship positions for other business disciplines (among other duties).
Accounting has handled this internally with Paul Mihalek leading the effort supported by
Monique Durant. In 2012-13, Paul Mihalek relinquished this duty and eventually retired for
health reasons. Monique Durant took over leadership of this effort with Mary McCarthy taking
a supporting role. The following table shows the participation in student internships and
accounting co-ops for the past four years.
Participation in Internships and Co-ops 2009-10 2010-11 2011-12 2012-13
CPA Firm Internships 5 7 11 20
Industry Internships 4 5 8 9
Government & Non-Profit Internships 1 0 0 6
Total Internships 10 12 19 35
Industry Co-ops* 5 (1) 2
Government & Non-Profit Co-ops* 4 (5) 7
Total Internships & Co-ops 28 41
*One student with an industry co-op and two students with co-ops at government agencies in
2012-13 were taking the accounting internship course using the co-op experience for their
experiential learning. They are removed from the total because they have already been
counted under internships.
3. Continue Curriculum Review and Improvement.
a. Have a Friday workshop to complete the program review of writing, presentation,
spreadsheet, and other programming requirements across the curriculum.
Evaluate the results and identify changes needed.
We did not make progress on this effort during 2012-13. Paul Milhalek was spearheading this
project, but he became ill and then retired in December. Monique Durant has taken over the

4

task of documenting the assignments across the curriculum. We need to complete that process
this fall and schedule a workshop to review the results and discuss changes to the curriculum.
We are adopting May and May, Effective Business Writing as a supplemental required text in
AC 300 in Fall 2013, and will have that as a recommended book in all Major classes throughout
the accounting curriculum in subsequent semesters. The book will serve as a reference for
students and as a model faculty can use in designing writing requirements and creating grading
rubrics.
4. Use assessment data more effectively to inform and drive improvement.
a. Improve coordination of assessment and improvement efforts. Identify one faculty
member to be responsible for leading and coordinating data gathering and
implementation of improvements in every course with sections taught by more
than one faculty member. Reduce the number of changes implemented at any
one time but improve the consistency of implementation and the assessment of
the impact of the changes.
In spring 2013 we developed and documented a procedure for communicating expectations for
assessment and assessment assignments and rubrics to all faculty teaching a course directly
involved with assessment. We also developed templates for each faculty member and each
course coordinator to use in reporting assessment results. This should make assessment
reporting more efficient and timely, so more time will be available to develop and implement
counter measures.
The reporting templates were sent to all faculty teaching a course section involved in
assessment on April 18
th
. In general the speed and completeness of reporting was an
improvement over previous semesters. However, the AC 211 and AC 212 reports were not
ready until the beginning of June, the assessment of learning outcomes 2.1 and 3.1 was not
reported separately in AC 212 (an instructor for one section subsequently provided separate
assessments), and the AC 300 report was not submitted until July 25
th
. These results suggest
that some faculty continue to give learning assessment a very low priority, and this limits the
usefulness of the assessments for all faculty. Reporting was further delayed because the School
of Business revised the assurance of learning reporting format after we had developed and
distributed our reporting templates for spring.
We expect further improvement as a result of distributing master syllabi, prior assessment
results and assessment instruments, or information on assessment assignments and rubrics
under revision prior to the beginning of the semester, coupled with meetings with faculty
focused on assessment and teaching during the first week of the semester. This will begin in Fall
2013, as we continue to implement the standard process we have established.
b. Work with the alumni association and the Development office to get email
addresses of recent graduates. Conduct a brief survey with graduates on
employment and professional certifications, and ask for feedback on our program
and suggestions for improvement.

5

We did not contact the alumni office because the School of Business was in the process of
developing a survey for all business school graduates. We submitted questions we wanted
regarding employment and attaining professional certification. We do not know if the survey
has been finalized or when we can expect to receive any results.
Historically the alumni office has been unwilling to share email address lists, and has
discouraged departments from contacting alumni. Their desire was to keep alumni from being
annoyed by multiple contacts, and to ensure that fundraising efforts are centrally coordinated
and controlled. We understand this, but we are unable to respond to questions about the
proportion of our students employed within six months of graduation with reasonable data,
and we have only anecdotal external validation of our efforts to prepare students for entry-
level positions as accounting professionals and for lifelong learning.
5. Support and Increase faculty scholarship.
a. Seek access to financial accounting and securities databases to aid research efforts
of current faculty and help attract qualified candidates for new openings.
In the past three years we have hired five new faculty members with interests in conducting
financial accounting research using archival data in financial accounting and securities
databases. A number of faculty in Finance are also interested in conducting research using
archival financial accounting and securities price data. Numerous databases are available
through WRDS (the Wharton Research Database System), which requires an annual fee with
added fees depending on the number of databases to which researchers will have access. Two
of the most commonly used databases Compustat and CRSP, could be acquired separately. We
understand that Southern Connecticut State University has subscribed to Compustat and CRSP.
These databases could also be used in upper level financial accounting classes.
We had access to Compustat (and CRSP, I believe) in the past, but when the financial crisis hit
and subscription costs rose these were cut. The Dean cited low usage as well as cost, but at the
time we did not have faculty conducting research using archival databases. Our faculty
currently conducting financial accounting research using archival data must rely on contacts
with colleagues at Universities that have access to the needed databases. Our inability to
provide access puts CCSU at a disadvantage in attracting and retaining faculty conducting
financial accounting research using archival data. We are already at a significant disadvantage
acquiring and retaining faculty because our salary caps at each rank are well below the market
rates for tenure track accounting faculty at teaching institutions. Lack of access to these
databases also hampers the ability of our faculty in this area to develop the research records
necessary for tenure. Financial accounting research using archival data is probably the most
common form of financial accounting research in peer-reviewed publications.
b. Monitor and encourage faculty scholarship. Schedule Brown bag presentations of
faculty research in progress if requested.
We also support faculty scholarship by providing financial assistance to support faculty
attendance at the Northeast Regional meeting of the American Accounting Association, and we
underwrite travel expenses for paper presentations beyond the support offered by the School
of Business if funds are not available from the School of Business. Historically, the Dean of the

6

School of Business has been very supportive of our faculty, supporting multiple presentations in
a single year in several cases.
No faculty requested brown bag presentations. We monitor faculty scholarship through the
entries in the Digital Measures Reporting System. The intellectual contributions by faculty in the
Accounting Department are summarized in the table below:

Creative activity 2009-10 2010-11 2011-12 2012-13
Peer-reviewed articles (5) 7 (4) 5 (5) 7 (8) 12
Other publications 2 1 2 0
Refereed Presentations Int. & National (3) 4 (7) 9 (10) 11 (16) 18
Refereed Presentations Reg. & Local (6) 7 (7) 11 3 5
Invited Presentations Int. & National 4 1 1 1
Invited Presentations Reg. & Local 1 6 0 0
Total (21) 25 (26) 33 (21) 24 (30) 36

The total reflects each incidence of a single faculty member contributing. The numbers in
parentheses are reduced to reflect collaboration among members of the department on single
items. There was a significant increase in overall faculty research productivity. Eight full-time
faculty members had at least one presentation or publication during 2012-13. Four full-time
tenured faculty members did not have any presentations or publications during the 2012-13
academic year. This includes one full time faculty member who retired in December, one
tenured faculty member (professionally qualified with no research release time), a tenured full
professor who published last year and has work in progress, and a new faculty member with a
number of research projects in progress. The detail listing of the intellectual contributions for
2012-13 follows.

2012-13 Intellectual Contributions by Faculty in the Accounting Department
Kulesza, M. G., Crespi, C., Mihalek, P. (2012). Examining Incentive-Based State Tax Legislation in
the Film Industry. Journal of Applied Financial Research, II, 50-60.
Greene, H., Crespi, C. (2012). The Value of Student Created Videos in the College Classroom: An
Exploratory Study in Marketing and Accounting. International Journal of Arts and
Sciences, 5(1), 273-283.
Crespi, C. (Presenter & Author), Kulesza, M. (Author Only), Academy of Business Reseearch,
"Investigating Tax Fraud: A Retrospective From Hollywood to Prison," New Orleans, LA.
(March 13, 2013).
Crespi, C. (Presenter & Author), Kulesza, M. (Presenter & Author), Northeast Region of

7

American Accounting Association, "Teaching Inventory Costing Methods," American
Accounting Association, Providence, RI. (October 19, 2012).
Crespi, C. (Presenter & Author), Kulesza, M. (Presenter & Author), Northeast Region of the
American Accounting Association Annual Conference, "Flipping Your Classroom,"
American Accounting Association, Providence, RI. (October 19, 2012).
Crespi, C., Academy on International Business Northeast Chapter, "Developing International
Pedagogy in an Undergraduate Tax Course," John F Welsh College of Business, Sacred
Heart University, Fairfield, CT. (October 12, 2012).
Crespi, C., Kulesza, M., Academy of Business Research, "New Experience Requirements for
Connecticuts Initial CPA Certification:," Academy of Business Research, Atlantic City, NJ.
(September 10, 2012).
McCarthy, M. M. (Presenter & Author), Crespi, C. (Presenter Only), Academy of Business
Research, "Standardization of the Introduction to Financial Accounting Course to
Enhance Student Learning," Academy of Business Research, Atlantic City, NJ.
Crespi, C., European Business Research Conference, "Tax Fraud in the FiIm Industry: Inside the
United States Cinema Circus," European Centre for Business and Economic Reseaech,
Rome, Italy. (August 27, 2012).
Crespi, C. (Presenter & Author), Kulesza, M. (Presenter & Author), American Accounting
Association Annual Conference, "Flipping Your Classroom," American Accounting
Association, National Harbor, MD (Wash DC). (August 7, 2012).
Durant, M. (2013). The First Circuit Breathes New Life into Facade Easement Deduction. The
Tax Advisor. www.aicpa.org/pubs/taxadv/index.htm Published: March 2013,
Durant, M., McCarthy, M. M. Generational Differences in Attitudes toward Deficit Reduction
Policy. Accounting & Taxation, 5(1), 71-84. www.theibfr.com/journal.htm
Durant, M. Blogging in Tax Class: Student Perceptions of Blog Effectiveness in an
Undergraduate Tax Curriculum. Academy of Business Research Journal.
www.academyofbusinessresearch.com
Durant, M. (2012). Tax Case: Single Member LLC Brings in a Second Owner. Journal of Business
Case Studies, 8(5), 447-457. www.cluteinstitute.com Published: September 2012
Durant, M. (Presenter & Author), 2012 Northeast Region Meeting, "Student Perceptions of Blog
Effectiveness in an Undergraduate Tax Curriculum," American Accounting Association,
Providence, RI. (October 12, 2012).
Durant, M. (Presenter & Author), Fall 2012 Conference, "Blogging in Tax Class: Accounting
Students Participate in the National Tax and Budget Debate," Academy of Business
Research, Atlantic City, NJ. (September 10, 2012).

8

Durant, M. (Presenter & Author), Fall 2012 Conference, "Shaping the Future for Deficit
Reduction Policy: Perspectives from the Millennial Generation," Academy of Business
Research, Atlantic City, NJ. (September 10, 2012).
Grasso, L. (Presenter & Author), DeBusk, G. K. (Presenter & Author), Institute of Management
Accountants Annual Conference, Accounting for Lean Enterprises: Values Stream
Costing and the Box Score, Institute of Management Accountants, New Orleans,
Louisiana. (June 24, 2013).
Grasso, L. (Presenter & Author), DeBusk, G. K. (Author Only), Moerland, Jr., C. L. (Author Only),
Northeast Region Meeting, American Accounting Association, "Using a Production
Simulation to Highlight the Differences Between Full Absorption Accounting and Lean
(or Throughput) Accounting," American Accounting Association, Providence, Rhode
Island. (October 19, 2012).
Grasso, L. (Presenter & Author), DeBusk, G. K. (Presenter & Author), Moerland, Jr., C. L. (Author
Only), American Accounting Association Annual Meeting, "The Application of Lean
Accounting to a Manufacturing Simulation: A Teaching Note," American Accounting
Association, National Harbor, Maryland. (August 6, 2012).
Grasso, L. (Presenter & Author), DeBusk, G. K. (Presenter & Author), American Accounting
Association Annual Meeting, "Teaching Lean Accounting: An Introduction," American
Accounting Association, National Harbor, Maryland. (August 5, 2012).
Grasso, L. (Presenter & Author), DeBusk, G. K. (Presenter & Author), American Accounting
Association Annual Meeting, "Teaching Lean Accounting: Value Stream Costing and the
Value Stream Boxscore," American Accounting Association, National Harbor, Maryland.
(August 5, 2012).
Grasso, L. (Presenter & Author), 2012 Lean Accounting Summit, "Teaching Lean Accounting:
Materials for the classroom and support from a community of instructors.," Lean
Accounting Summit, LLC., Lean Frontiers, Orlando, Florida. (September 14, 2012).
Lim, K. Value-Relevance of Bank Regulatory Capital, Accounting Capital, and Market Capital at
the Time of Financial Distress, Journal of Global Business Development.
Lim, K., Academy of Business Research International Conference, "Which is the More Effective
Enforcer, the Bond Market or the Bank Regulatory Bureaucracy," Academy of Business
Research, New Orleans, LA. (March 2012).
McCarthy, M. M., Solomon, P., Mihalek, P. (2012). Financial Crisis During 2007 and 2008:
Efficient Markets or Human Behavior?. Journal Of Applied Business Research, 28(6),
1275-1282.
Durant, M., McCarthy, M. M. Generational Differences in Attitudes toward Deficit Reduction
Policy. Accounting & Taxation, 5(1), 71-84. www.theibfr.com/journal.htm
McCarthy, M. M. (Presenter & Author), Crespi, C. (Presenter Only), Academy of Business
Research, "Standardization of the Introduction to Financial Accounting Course to
Enhance Student Learning," Academy of Business Research, Atlantic City, NJ.

9

McCarthy, M. M. (Presenter & Author), McCarthy, R. V. (Presenter & Author), Academy for
Business Research Conference, "Social media as a means to enhance student learning:
Tool or distraction?." (March 2012).
McCarthy, M. M. (Presenter & Author), 2012 Orlando International Business & Economics
Conference, "Financial Crisis of 2007 and 2008: Efficient Markets or Human Behavior?,"
Orlando, Florida. (January 5, 2012).
Kulesza, M. G., Crespi, C., Mihalek, P. (2012). Examining Incentive-Based State Tax Legislation in
the Film Industry. Journal of Applied Financial Research, II, 50-60
1275-1282.
Crespi, C., Kulesza, M., Mihalek, P., Academy of Business Research, "Examining Incentive-Based
State Tax Legislation in the Film Industry," Academy of Business Research, New Orleans,
LA. (March 15, 2012).
1275-1282.
Solomon, P. (2012). Motivating Students to Read the Textbook by Using an Active Learning-
Based Test-Retest Process. (pp. 47). Atlantic City, NJ: Academy of Business Research.
Stoneback, J., Academy of Business Research, "Brief History of Economy, Management
Accounting and Businss Practice," Academy of Business Research, Biloxi, MS. (November
7, 2012).
B. Progress with Strategic Planning.
The Department of Accounting does not have a strategic plan. Our strategic planning is done in
the context of the School of Business. In the context of the School of Business strategic plan, we
select the annual departmental goals we believe will do the most toward supporting and
realizing School of Business Goals. The 2011-16 Strategic Goals of the School of Business are
shown below and the Department of Accounting annual goals directly and indirectly supporting
those goals are listed beneath them.
1. Develop closer relationships with area businesses and organizations to better serve their
needs and to better prepare our students to contribute to their communities.
a. Directly supported by Department of Accounting Goals 1. Improve relationships
with CPA Firms and area businesses, and 2. Increase student participation in
internships and co-ops.
2. Enhance our students ability to innovate in the economy by making CCSUs School of
Business a center for entrepreneurial excellence.

10

3. Earn recognition for the quality of our programs and enhance our reputation by
attaining and maintaining AACSB accreditation.
a. Directly supported by Department of Accounting Goal 5. Support and increase
faculty scholarship.
b. Indirectly supported by Department of Accounting Goals 3. Continue curriculum
review and improvement, and 4. Use assessment data to more effectively
inform and drive improvement
4. Continually improve our programs and courses by systematically assessing learning
outcomes and developing and implementing improvement activities.
a. Directly supported by Department of Accounting Goals 3. Continue curriculum
review and improvement, and 4. Use assessment data to more effectively
inform and drive improvement.
5. Close the achievement gap between minority and disadvantaged students and the
general student population.
C. Administrative Changes.
We began the 2012-13 academic year with 13 full-time faculty assigned to accounting, including
two new tenure-track appointments and one emergency appointment. The department
chairman was on sabbatical for the fall 2012 semester and a tenured Associate Professor was
on sabbatical in spring 2013. We began a search for a tenure track appointment to replace our
emergency appointment during the fall. Two tenured full professors announced their intention
to retire effective December 2012, and we were able to expand our existing search to cover
two additional lines. We also hired another emergency appointment for the spring 2013
semester.
We were able to hire two new tenure-track faculty members to begin in fall 2013. Our search
for a third tenure-track appointment failed, and we hired an emergency appointment for the
2013-14 academic year.
D. Special Initiatives.
Mary McCarthy has been deeply involved in the School of Businesss Insurance and Financial
Services special initiative, developing a a targeted program to prepare students for careers in
the insurance and financial services industries.
E. Significant Accomplishments.
Student Achievement: Scholarships and Awards Received by students during 2012-13.
Jason Violette Departmental Honors Award
Marcos Santiago Frank D. Cannata Scholarship
Nicole Pizzoferrato Michael J. Witty Scholarship
Kaitlynn Cistulli Harper & Whitfield Scholarship
Andrew Thompson BlumShapiro Scholarship

11

Kamil Kolokowski CTCPA Award of Merit
Danielle Pennoyer CTCPA Junior Award
Christopher Rothkugel IMA Scholarship
Samantha Hellyar SNE Institute of Internal Auditors Outstanding Student Award
Colleen Maller CPA Outstanding Achievement Award
Jason Hewitt Accounting Department Service Award
Daniel Slepski received a CPAExcel Video Gold Medal Award
Austin Craig, Michael Falk, Kelly Gatzen, and Sara Weller received Gleim Professional
Exam Review Awards
Community Outreach: Student participation in the VITA Program
VITA training for the 2013 tax season was completed on the CCSU campus during two
Saturday sessions; on January 11 and 18, 2013. Twenty three CCSU students were
trained on the 11th and twenty nine students were trained on the 18th for a total of
fifty-two students. All training was completed by Bill Morrow, Senior Relationship Tax
Consultant at the Hartford Office, Internal Revenue Service, with Monique Durant,
Associate Professor at CCSU assisting. All students were certified for basic tax
preparation during the training sessions and were deployed at various sites throughout
the state, primarily in the Greater Hartford and New Britain areas. Many students went
on to complete secondary and advanced certification in tax return completion. The
students provided free tax assistance for low income taxpayers at a number of locations
throughout central Connecticut.
Teaching
David Barlar, Adjunct Instructor in Accounting, was named to the honor roll for CCSUs
2012 Excellence in Teaching Award.
Cheryl Crespi, Associate Professor of Accounting, was named to the honor roll for
CCSUs 2012 Excellence in Teaching Award.
Monique Durant, Associate Professor of Accounting, was a semi-finalist for CCSUs 2012
Excellence in Teaching Award.
Monique Durant, Associate Professor of Accounting, was awarded a 2013 Curriculum
Development Grant in the amount of $1717 in support of her project, Development of
Course in Estate, Gift and Trust Taxation.
Lawrence Grasso, Professor of Accounting, received the 2012 Excellence in Lean
Accounting Professor Award sponsored by the Lean Enterprise Institute.
Lawrence Grasso, Professor of Accounting, (along with co-authors Gerald DeBusk and
Clay Moerland) received honorable mention for the Mark Chain/FSA Innovation Award
for teaching in graduate accounting education.

12

Research
Monique Durant, Associate Professor of Accounting, received a best paper award for
Blogging in Tax Class: Student Perceptions of the Effectiveness of Blogging in an
Undergraduate Tax Curriculum, at the Academy of Business Research Conference in
Atlantic City, NJ, September 2012.
Monique Durant, Associate Professor of Accounting, received a best paper award for
Student Perceptions of Blog Effectiveness in an Undergraduate Tax Curriculum, at the
Northeast Regional Meeting of the American Accounting Association, Providence, RI
October 2012.
G. Assessment.
The spring and fall 2011 assessment reports were appended to our 2011-12 annual report
subject to external review. The spring 2012 reports had not been completed at the time of the
review. See the following exhibits:
Appendix_G_Ex01_Accounting_Major_AOL_Report_Spring_2012.pdf.
Appendix_G_Ex02_Accounting_BSBA_AOL_Report_Spring_2012.pdf.
Appendix_G_Ex03_Accounting_Major_AOL_Report_Fall_2012.pdf.
Appendix_G_Ex04_Accounting_BSBA_AOL_Report_Fall_2012.pdf.
Appendix_G_Ex05_Accounting_Major-Sp13-LO1.pdf.
Appendix_G_Ex06_Accounting_Major-Sp13-LO2A.pdf.
Appendix_G_Ex07_Accounting_Major-Sp13-LO2B.pdf.
Appendix_G_Ex08_Accounting_Major-Sp13-LO3A.pdf.
Appendix_G_Ex09_Accounting_Major-Sp13-LO3B.pdf.
Appendix_G_Ex10_Accounting_Major-Sp13-LO4.pdf.
Appendix_G_Ex11_BSBA-G1-Accounting-Sp13-LO1.pdf.
Appendix_G_Ex12_BSBA-G1-Accounting-Sp13-LO2A.pdf.
Appendix_G_Ex13_BSBA-G1-Accounting-Sp13-LO2B.pdf.
Appendix_G_Ex17_BSBA-G2-Program-Sp13-LO1.pdf.
Appendix_G_Ex18_BSBA-G3-Program-Sp13-LO1.pdf.


13

II. Planning for 2013-2014

A. Goals.
Our goals and the objectives related to those goals we will work on in the coming year are:
1. Improve relationships with CPA firms and area businesses.
a. Increase the number of firms participating in on-campus recruiting.
b. Establish clear lines of communication and coordination with the School of Business
development officer on visits to accounting firms or accounting professionals.
c. Document and increase the number of interactions between accounting
professionals and accounting students (e.g., classroom visits, Accounting Society
meetings and other campus events. Field visits by accounting students).
d. Re-establish an accounting department advisory board.

2. Increase student participation in internships and CO-OPS.
a. Maintain clear lines of communication and coordination with CACE and with the
School of Business Deans office to ensure accurate and up-to-date information.
b. Increase the number of students participating in for credit internships and
accounting co-ops (either non-credit or for credit) from 41 to 50.

3. Continue Curriculum Review and Improvement.
a. Complete the program review of writing, presentation, spreadsheet, and other
programming requirements across the curriculum. Have a Friday workshop to
evaluate the results and identify changes needed.
b. Ensure an up-to-date master syllabus is available on the shared drive for each
accounting course in the curriculum.

4. Use assessment data more effectively to inform and drive improvement.
a. Follow the procedure we have established for completing assessment reports in a
timely fashion.
b. Have meetings during the first week of the semester with all full time and part time
faculty teaching AC 211, 212, 300, 301, 313, 340 and 445 to be sure all faculty are
aware of and fully understand their assessment responsibilities.
c. Update the assessment templates to reflect the new School of Business reporting
format.
d. Get results of the School of Business Alumni survey. Use the results in curriculum
assessment.
e. Analyze the results of CCSU alumni performance on the CPA exam. Use the results to
assess the curriculum changes and to establish pass rate goals. See if similar data
are available for the CMA exam.

5. Support and Increase faculty scholarship.

14

a. Seek access to financial accounting and securities databases to aid research efforts
of current faculty and help attract qualified candidates for new openings.
b. Meet with SCSU faculty to discuss opportunities for research collaboration.
c. Monitor and encourage faculty scholarship. Schedule Brown bag presentations of
faculty research in progress if requested.

B. Collaboration.
We plan to work with the Finance Department on obtaining access to Accounting and Securities
databases.
We plan to meet with the accounting department at SCSU to discuss possible research
collaboration, discuss best teaching innovations and best practices, and become more familiar
with each others programs.
C. Needs.
We need access to Accounting and Securities databases to increase research output, support
our recently hired tenure-track faculty, and to increase our likelihood of attracting qualified
faculty as current faculty retire.

APPENDIX. Copy of assessment report submitted for 2011-2012.
Ma[or Leve| keport|ng - based on Spr|ng 2012 data

8evlsed 7/11/12 from earller verslon Lo lnclude assessmenL resulLs from Lhe evenlng secLlon of AC 301. 1he
evenlng lnsLrucLor had acLlve duLy ln Lhe naLlonal Cuard ln May. 1he coordlnaLlng professor for AC 301 lefL for
vacaLlon ln May, so Lhe evenlng secLlon assessmenL resulLs were noL made avallable Lo Lhe chalr unLll !uly.

Department: Ma[or-Account|ng
reamb|e: SLudenLs who graduaLe from Lhe AccounLlng Ma[or should possess compeLencles
and skllls needed for enLry and advancemenL ln Lhe accounLlng professlon.
Sect|on Cne - Learn|ng Cutcomes and Numer|c kesu|ts.
As evldence LhaL Lhey possess Lhe compeLencles and skllls needed for enLry and advancemenL
ln Lhe accounLlng professlon, we expecL sLudenLs Lo be able Lo:
1. Determ|ne and app|y the appropr|ate account|ng standard(s) for a bus|ness event or a
g|ven set of c|rcumstances. 1he ablllLy Lo prepare accounLlng reporLs LhaL apply Lhe
approprlaLe accounLlng concepLs and sLandards and properly accounL for Lhe underlylng
buslness evenLs or clrcumsLance. 1hls ouLcome ls focused on flnanclal accounLlng and
Lax accounLlng, Lhough ldenLlfylng and uslng approprlaLe Lechnlques ls also lmporLanL
for managerlal accounLlng.
2. Lva|uate an account|ng system for contro| strengths and weaknesses. 1he ablllLy Lo
evaluaLe accounLlng reporLs for falr presenLaLlon of flnanclal poslLlon and operaLlng
resulLs and Lo evaluaLe Lhe conLrol sLrengLhs and weaknesses of accounLlng sysLems
used Lo prepare Lhe flnanclal reporLs. 1hls ouLcome ls focused prlmarlly on accounLlng
lnformaLlon sysLems and audlLlng.
3. So|ve comp|ex (f|nanc|a| and manager|a|) account|ng prob|ems. 1he ablllLy Lo solve
complex accounLlng problems, lncludlng Lhe analysls and use of flnanclal accounLlng
lnformaLlon Lo supporL flnanclng and lnvesLlng declslons, Lhe use of managerlal
accounLlng lnformaLlon Lo supporL buslness declslons, Lhe use of Lax reporLlng
requlremenLs and consequences Lo supporL buslness declslons, and deLermlnlng how Lo
deslgn accounLlng lnformaLlon sysLems or lmprove exlsLlng sysLems.
4. 1ransform from a student to an account|ng profess|ona| (|.e. profess|ona||sm and
eth|ca| conduct). SLudenLs musL demonsLraLe awareness of and a wllllngness and ablllLy
Lo follow Lhe eLhlcal sLandards and norms for proper buslness behavlor requlred of
accounLlng professlonals.
1he Lable on Lhe followlng page summarlzes Lhe sprlng 2012 assessmenL resulLs for Lhe four
learnlng ouLcomes.

Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable
1) ueLermlne and apply
approprlaLe accounLlng
sLandard for Lhe
clrcumsLance
AC 313 87 3

42 (48%)

32 (37%) 13 (15%)
2) LvaluaLe accounLlng
sysLem for sLrengLhs and
weaknesses
AC 340
AC 445
68
77
3
3
15 (22%)
59 (77%)
22 (32%)
15 (19%)
31 (46%)
2 (4%)
3) Solve complex
accounLlng problems
AC 301
AC 313
52
87
3
3
17 (33%)
20 (23%)
29 (56%)
57 (66%)
6 (12%)
10 (11%)
4) 1ransform Lo a
member of Lhe
accounLlng professlon
(knowledge and eLhlcs)
AC 300 92 4 38 (41%) 48 (52%) 6 (7%)

Sect|on 1wo - I|nd|ngs

Learn|ng outcome 1 - ueLermlne and apply Lhe approprlaLe accounLlng sLandard(s) for a
buslness evenL or a glven seL of clrcumsLances - ls deslgned Lo reflecL Lhe sLudenLs' crlLlcal
Lhlnklng and analyLlcal reasonlng ablllLles as well as Lhelr knowledge of accounLlng sLandards.

Learnlng ouLcome 1 was evaluaLed uslng Lwo dlfferenL assessmenL Lools ln Lhe sprlng 2012
semesLer. Cne secLlon of Lhe course was evaluaLed uslng exam problems. Lxam problems
requlred Lhe sLudenLs Lo descrlbe Lhe accounLlng crlLerla for caplLallzlng a lease and analyze and
apply Lhe approprlaLe accounLlng LreaLmenL for Lwo LransacLlons. lor Lhe flrsL LransacLlon, Lhe
sLudenL was requlred Lo deLermlne lf Lhe lessee should caplLallze Lhe lease and why, prepare an
amorLlzaLlon schedule, and provlde Lwo full years of [ournal enLrles. 1he second LransacLlon
requlred Lhe sLudenL Lo analyze a lessor LransacLlon, deLermlne lf Lhe lease was a dlrecL-
flnanclng lease or sales-Lype lease and provlde Lhe approprlaLe [ournal enLrles. 1he oLher Lwo
secLlons of Lhe course used an ouL-of-class wrlLlng asslgnmenL. 1he asslgnmenL was one of
Lhree lAS8 CodlflcaLlon research memos. 1he asslgnmenL used for Lhls ouLcome requlred Lhe
sLudenLs Lo assume Lhe role of a self-employed accounLanL and provlde Lhe proper accounLlng
for a lease LransacLlon Lo a cllenL. SLudenLs were Lold Lo use Lhe lAS8 CodlflcaLlon 8esearch
SysLem Lo conducL Lhelr research and respond ln Lhe form of a buslness leLLer.

1he goal of 80 performlng aL AccepLable or Above AccepLable was noL achleved ln Lhe exam
seLLlng, as 33 performed aL below accepLable. 1he flrsL lease problem was exLremely dlfflculL
due Lo Lhe mulLlple years plus reverslng enLrles. As a resulL, several sLudenLs appeared Lo run
ouL of Llme and dld noL answer Lhe second lease LransacLlon. lor Lhe Lwo class secLlons uslng
Lhe ouLslde class asslgnmenL, ls asslgnmenL Lhe goal of 80 was achleved as 94 performed aL

an Above-accepLable or AccepLable level whlle 6 were 8elow AccepLable. Cverall, Lhe goal of
80 aL an AccepLable level or Above AccepLable was achleved. Cverall comblned resulLs for all
Lhree class secLlons were 83 Above AccepLable or AccepLable and 13 8elow AccepLable.
1hls was an lmprovemenL over fall 2011, when 76 of Lhe sLudenLs performed aL an accepLable
level or above, buL below sprlng 2011 when 93 of sLudenLs performed aL an accepLable level
or above. 1he dlfferences are largely aLLrlbuLable Lo wheLher or noL Lhe assessmenL was based
on a Llmed problem embedded ln an exam or on an unLlmed problem compleLed ouLslde class.

Learn|ng outcome 2 - LvaluaLe accounLlng sysLem for [lnLernal conLrol] sLrengLhs and
weaknesses - ls deslgned Lo reflecL Lhe sLudenLs' crlLlcal Lhlnklng and analyLlcal reasonlng
ablllLles as well as Lhelr knowledge of lnLernal conLrols for accounLlng and reporLlng sysLems.
1hls knowledge ls lmporLanL for sysLem deslgn as well as for lnLernal and exLernal audlLlng
servlces.

ln AC 340, only 34 of Lhe 68 sLudenLs assessed were [udged accepLable or above, ldenLlfylng
Lhree or more ma[or conLrols and counLermeasures when analyzlng an lnLernal conLrol case.
1wenLy-Lwo percenL performed aL an above accepLable level. 1hls ls well below goal, and
reverses a Lrend of lmprovlng performance lncludlng performance well above goal ln fall 2011.
ln fall 2011 94 of sLudenLs performed aL an accepLable level or beLLer, exceedlng Lhe 80
Lhreshold, and 64 performed aL an above accepLable level. ln sprlng 2011 80 of sLudenLs
performed aL an accepLable level or beLLer ([usL reachlng our LargeL) wlLh 23 performlng aL an
above accepLable level. 1he new case used for assessmenL ln sprlng 2012 revealed a gap ln
sLudenL learnlng.

ln AC 443, rlnclples of AudlLlng, sLudenLs were assessed uslng an lndlvldual pro[ecL. 1he
sLudenLs used AudlLlng Alchemy Company" maLerlals prepared by rlcewaLerhouseCoopers Lo
learn abouL Lhe company, Lhe lnLernal conLrol sysLem ln place ln operaLlons, walk-Lhrough
maLerlals Lo help assess Lhe lnLernal conLrol sysLem. 1here were also vldeos of lnLervlews wlLh
employees and of Lhe machlne and how lL was operaLed, and a presenLaLlon on CAvla8
(CompleLeness, Accuracy, valldlLy, and 8esLrlcLed Access) (lnLernal conLrol requlremenLs). All
buL Lwo sLudenLs ouL of 77 performed aL an accepLable level or above, and 77 were above
accepLable. 1hese resulLs are well above Lhe LargeL Lhreshold of 80 of sLudenLs achlevlng
accepLable performance or beLLer, buL Lhe resulLs are lower Lhan Lhose ln sprlng and fall 2011.
ln sprlng and fall 2011 performance of all sLudenLs assessed was aL leasL accepLable, and almosL
all of Lhe sLudenLs (93 sprlng 2011, and 98 fall 2011) had above accepLable performance. ln
sprlng and fall 2011 Lhe assessmenL was compleLed ln only Lwo of Lhree class secLlons offered
each semesLer.

Learn|ng outcome 3 - Solvlng complex accounLlng problems - ls deslgned Lo assess sLudenLs'
Lechnlcal knowledge of accounLlng and problem solvlng ablllLy. ln AC 301 Lhe assessmenL ls
conducLed uslng a dlfferenL mlnl-case each semesLer. ln sprlng 2012, Lhe mlnl-case lnvolved
ldenLlfylng Lhe relevanL cosLs and maklng a declslon ln a [olnL cosLlng problem. ln AC 313
sLudenLs were glven a comprehenslve exam problem requlrlng sLudenLs Lo creaLe a penslon

worksheeL and demonsLraLe Lhelr undersLandlng of LhaL worksheeL by applylng Lhe resulLs Lo
flnanclal reporLlng.

ln Lhe cosL managemenL sysLems course (AC 301), 88 of sLudenLs performed aL an accepLable
level or above, wlLh 33 above accepLable. 1hls was an lmprovemenL over fall 2011 when 89
of sLudenLs were accepLable or above buL only 24 were above accepLable. ln sprlng 2011,
only 67 of sLudenLs performed aL an accepLable level or above, alLhough 31 were above
accepLable.

ln AC 313 (llnanclal 8eporLlng ll) 89 of sLudenLs performed aL an accepLable level or above,
exceedlng Lhe LargeL of 80. 1wenLy-Lhree percenL of Lhe sLudenLs were raLed above
accepLable. ln sprlng 2011 90 of sLudenLs performed aL an accepLable level or above, buL a
smaller proporLlon of sLudenLs (13) performed aL an above accepLable level. Powever, Lhe
sprlng 2012 performance was below fall 2011 when 96 of sLudenLs were accepLable or above
and 43 were above accepLable.

Learn|ng outcome 4 - 1ransform Lo a member of Lhe accounLlng professlon (knowledge and
eLhlcs) - ls deslgned Lo ensure LhaL sLudenLs are aware of Lhe lmpllcaLlons demands and
expecLaLlons assoclaLed wlLh enLerlng Lhe accounLlng professlon. 1hls ouLcome assesses
sLudenLs' awareness and undersLandlng of expecLaLlons and demands ln flve areas crlLlcal Lo
success as an accounLlng professlonal: (1) LLhlcal conducL, lncludlng awareness of Lhe codes of
eLhlcs assoclaLed wlLh accounLlng professlonal organlzaLlons, (2) professlonal demeanor and
dress/appearance, (3) professlonal communlcaLlon, (4) belng responslble, Llme managemenL
and Leam work, lncludlng meeLlng deadllnes, and (3) compeLence, meeLlng educaLlonal
sLandards, Lechnlcally knowledgeable, exerclslng due care, and provldlng full dlsclosure.

rlor Lo sprlng 2012, sLudenLs are asked Lo wrlLe an essay on whaL lL means Lo be an accounLlng
professlonal. 1he essay ls assessed on Lhe sLudenLs' demonsLraLed undersLandlng of Lhe
demands and obllgaLlons ln Lhe four areas. uurlng Lhe Sprlng 2012 semesLer Lhe asslgnmenL
was enhanced Lo lnclude a comprehenslve pro[ecL (fraud case) coverlng a wrlLlng asslgnmenL,
developlng an ouLllne, preparlng a powerpolnL presenLaLlon, oral presenLaLlon, and evaluaLlon
of a Lhe Leam. 1he fraud case was 10 of Lhe sLudenLs' grade. Lach sLudenL was requlred Lo
research an asslgned company whose managemenL had commlLLed fraud and wrlLe an essay on
Lhe fraud lncludlng whaL accounLlng prlnclples were vlolaLed, how should Lhe accounLlng have
been LreaLed, who were Lhe key players and whaL were Lhe consequences. 1he sLudenLs Lhen
developed an ouLllne for Lhelr oral presenLaLlon and creaLed a powerpolnL sllde presenLaLlon.
AddlLlonally, each sLudenL was requlred Lo glve a 3-10 mlnuLe oral presenLaLlon. LasLly,
sLudenLs evaluaLed Lhelr group's performance.

ln Sprlng, 2012, only slx of 92 sLudenLs were below accepLable, 48 sLudenLs performed aL an
accepLable level, and 38 sLudenLs performed above expecLaLlons. Cverall, 93 performed aL an
accepLable level or above. Whlle Lhe sprlng 2012 resulLs are lower Lhan Lhose reporLed ln fall
2011 and sprlng 2011, Lhe assessemenL asslgnmenL ls more demandlng and Lhe resulLs exceed

our LargeL of 80 or more sLudenLs achlevlng accepLable or beLLer performance. ln addlLlon,
Lhe sprlng and fall 2011 assessmenL asslgnmenL was only worLh x of a percenL Lowards Lhe
sLudenLs' flnal grade. Some sLudenLs, very llkely, Lhe weaker sLudenLs dld noL compleLe Lhe
asslgnmenL. SlxLeen sLudenLs dld noL compleLe Lhe asslgnmenL durlng Lhe fall 2011 semesLer.

Sect|on 1hree - Ana|ys|s

Learn|ng outcome 1: unllke Sprlng 2011 when all Lhree secLlons were assessed uslng Lhe same
llnanclal AccounLlng 8esearch asslgnmenL, one class secLlon ln Sprlng 2012 and Lwo class
secLlons ln lall 2011 used exam quesLlons for Lhe assessmenL. 1he proporLlon of sLudenLs
achlevlng above accepLable, accepLable, and below accepLable performance are summarlzed ln
Lhe Lable below:
erformance level AssessmenL Sprlng 2011 lall 2011 Sprlng 2012
Above AccepLable Pomework
Lxam
Cverall
(66) 73
---
(66) 73
(13) 63
(13) 28
(28) 39
(30) 32
(12) 40
(42) 48
AccepLable Pomework
Lxam
Cverall
(16) 18
---
(16) 18
(7) 29
(19) 40
(26) 37
(24) 42
(8) 27
(32) 37
8elow accepLable Pomework
Lxam
Cverall
(6) 7
---
(6) 7
(2) 8
(13) 32
(17) 24
(3) 6
(10) 33
(13) 13

lor sLudenLs assessed uslng an unLlmed asslgnmenL compleLed ouLslde of class, Lhe proporLlon
of sLudenLs wlLh below accepLable performance has remalned roughly consLanL over Lhe pasL
Lhree semesLers and lL has been below 10. Powever, Lhe proporLlon of sLudenLs performlng
aL above accepLable level dropped sLeadlly from 73 ln sprlng 2011 Lo 32 ln sprlng 2012. 1he
drop-off ln above accepLable performance may be due Lo Lhe fall 2011 semesLer belng
dlsrupLed by Lwo exLended school closlngs due Lo weaLher, and Lhe asslgnmenL used ln Lhe
sprlng 2012 semesLer was modlfled Lo prevenL currenL sLudenLs from collaboraLlng wlLh pasL
sLudenLs (lL may have been more dlfflculL Lhan Lhe prlor asslgnmenL). We need Lo monlLor Lhe
performance aL Lhe above accepLable level as well as aL Lhe accepLable Lhreshold.

Lxam quesLlons were used Lo assess learnlng ouLcome 1 ln Lwo class secLlons ln fall 2011 and ln
one class secLlon ln sprlng 2012. 8oughly one Lhlrd of Lhe sLudenLs had below accepLable
performance each semesLer, alLhough Lhe proporLlon of sLudenLs wlLh above accepLable
performance was hlgher ln sprlng 2012 Lhan ln fall 2011. 1he sprlng resulLs are from a slngle
class secLlon so we musL be careful abouL drawlng concluslons from Lhe small sample. 1he flrsL
lease problem ln sprlng was exLremely dlfflculL due Lo Lhe mulLlple years plus reverslng enLrles.
As a resulL, several sLudenLs appeared Lo run ouL of Llme and dld noL answer Lhe second lease
LransacLlon. lf embedded exam quesLlons are golng Lo be used for Lhe assessmenL, lL's
lmporLanL LhaL Lhe Llme alloLLed for Lhe response (for Lhese quesLlons and for Lhe exam as a
whole) ls reasonable for a sLudenL meeLlng expecLaLlons.

Learn|ng outcome 2: lorLy-slx percenL of Lhe sLudenLs were below accepLable ln Lhe sprlng
2012 AccounLlng lnformaLlon SysLems conLrol analysls assessmenL. 1he fall 2011 assessmenL
was done ouLslde of a LesLlng seLLlng whlle Lhe sprlng 2011 and 2012 assessmenLs were
embedded ln LesLs, so some drop-off from fall 2011 was expecLed. Powever, Lhe sprlng 2012
performance was much lower Lhan ln sprlng 2011, when 80 of sLudenLs performed aL an
accepLable level or beLLer. 1he sprlng 2012 assessmenL case lnvolved a compuLerlzed sysLem,
whlle Lhe prevlous assessmenLs lnvolved a slmple manual sysLem. Analyzlng Lhe performance
of sprlng 2012 sLudenLs who had below accepLable performance a common error was found.
Many sLudenLs dld noL correcLly ldenLlfy Lhe [ob of Lhe person ln Lhe case and how segregaLlon
of duLles applles Lo LhaL parLlcular [ob, appllcaLlons developer. lnsLead, mosL of Lhe sLudenLs
who fell below Lhe accepLable performance level gave a generlc or lncorrecL sLaLemenL abouL
segregaLlon of duLles and dld noL Lake lnLo conslderaLlon Lhe [ob of Lhe person ln Lhe case.

AlLhough all buL Lwo sLudenLs achleved accepLable or beLLer performance, Lhe sLudenL
performance aL Lhe hlgh end on Lhe AudlLlng Alchemy Case ln sprlng 2012 was below Lhe
excellenL resulLs ln sprlng and fall 2011. 1hls semesLer all Lhree secLlons were assessed. ln
sprlng and fall 2011, only Lhe Lwo secLlons were assessed. 1he addlLlon of Lhe evenlng sesslon
Lo Lhe assessmenL was noL Lhe ma[or cause of Lhe drop-off ln Lhe proporLlon of sLudenLs
performlng above expecLaLlons Lo 77 from over 93. nlneLeen percenL of Lhe sLudenLs ln Lhe
day secLlons LaughL by Lhe prlmary lnsLrucLor were aL accepLable, compared Lo [usL 2 ln fall
2011. We need Lo monlLor Lhe hlgh-end sLudenL performance.

Learn|ng outcome 3: ln assesslng Lhe ablllLy Lo solve complex accounLlng problems ln CosL
ManagemenL SysLems, we moved from uslng LwenLy common mulLlple cholce quesLlons Lo
havlng sLudenLs solve a mlnl-case and crlLlcally analyze or explaln Lhe slgnlflcance of Lhelr
resulLs. We belleve Lhls ls a rlcher assessmenL of sLudenL ablllLles Lo solve complex accounLlng
problems. We now have Lhree semesLers uslng Lhe new assessmenL Lool LhaL was flrsL
lnLroduced ln Sprlng 2011. erformance has lmproved each Llme, alLhough only very sllghLly ln
sprlng 2012 compared Lo fall 2011and was aL a very hlgh level ln sprlng 2012. ln sprlng 2012 all
sLudenLs were able Lo analyze alLernaLlves. Some sLudenLs were weaker ln speclfylng Lhe rooL
problem, comparlng Lhe advanLages and dlsadvanLages of Lhe problems Lhey ldenLlfled and ln
presenLlng Lhelr concluslons.
lor AC 313 1he goal of 90 performlng aL an accepLable level or above was achleved wlLh 89
performlng aL an AccepLable or Above AccepLable level. 1hree class secLlons were dedlcaLed Lo
enslon AccounLlng. SLudenLs had several homework asslgnmenLs preparlng penslon
worksheeLs and calculaLlng penslon expense. ln addlLlon, a comprehenslve enslon WorksheeL
roblem worLh 3 of Lhe sLudenL's grade was requlred ln one secLlon (AC 313-01 (41499). rlor
Lo Lhe exam, Lhe enslon WorksheeL roblem was revlewed and used for a sLudy Lool ln
preparaLlon of Lhe exam. 1hls seemed Lo work well. 1he approach used for penslons has been

conslsLenL for Lhe pasL Lhree semesLer and Lhe resulLs for accepLable or beLLer performance ln
sprlng 2012 were roughly Lhe same as 2011 wlLh a hlgher proporLlon of sLudenLs performlng
above expecLaLlons ln 2012. Powever fall 2011 resulLs were even beLLer. lall 2011 should be
examlned more closely ln comparlson Lo sprlng 2012, Lo see lf a cause for Lhe superlor
performance can be deLermlned.

Learn|ng outcome 4: ln prevlous semesLers Lhe lnsLrumenL was an essay worLh x of a percenL
Lowards Lhe sLudenLs' flnal grade. As a resulL, many sLudenLs dld noL compleLe Lhe asslgnmenL.
1hls semesLer an enhanced lnsLrumenL was used Lo evaluaLe Lhe sLudenLs and counLed 10
Lowards Lhe sLudenLs' flnal grade. 1he new lnsLrumenL lncluded evaluaLlon of Lhe lndlvldual
sLudenLs' sofL skllls (wrlLLen, oral, presenLaLlon Lools, Leamwork, leadershlp, Llme
managemenL), as well as research and Lechnlcal skllls (lncludlng eLhlcs and accounLlng lssues).

1he Lhree lnsLrucLors Leachlng Lhe four secLlons developed Lhe asslgnmenL LogeLher and used a
conslsLenL rubrlc. AC300-01 and AC300-02 secLlons had a hlgher percenLage of sLudenLs ln Lhe
Above AccepLable" caLegory. 1hls ls due Lo Lhe lnsLrucLor permlLLlng Lwo wrlLLen asslgnmenLs
Lo be revlsed and resubmlLLed. 1he essay porLlon of Lhe asslgnmenL was worLh 30 of Lhe
sLudenLs' grade on Lhe fraud case (or ~3 of Lhelr LoLal grade) compared Lo oLher wrlLLen
asslgnmenLs worLh approxlmaLely 1 of Lhelr LoLal grade, Lherefore, many sLudenLs revlsed and
resubmlLLed Lhe essay porLlon of Lhe fraud case.

Areas where sLudenLs need lmprovemenL lnclude Lhelr wrlLlng skllls (e.g., grammar errors, poor
LranslLlons, noL plaglarlzlng). As expecLed, mosL sLudenLs were uncomforLable speaklng ln fronL
of Lhe class and Lended Lo read from Lhelr noLes raLher Lhan speaklng Lo Lhe class. ConLlnued
pracLlce ln Lhelr coursework wlll help allevlaLe Lhls uneaslness and beLLer prepare Lhem for Lhe
lndusLry. Cverall, Lhe sLudenLs worked well ln Lhelr groups and demonsLraLed an awareness of
Lhe eLhlcal and accounLlng lssues.

Sect|on Iour - Use of kesu|ts

Learnlng Cb[ecLlve 1 - Applylng Lhe approprlaLe accounLlng sLandard for Lhe clrcumsLance.

AcLlon lLems:
1) ueLermlne a unlform assessmenL exerclse or exerclses Lo apply across all course
secLlons.
2) 8evlse Lhe flrsL lease LransacLlon used on Lhe exam assessmenL Lool as lL ls overly
compllcaLed.
3) 8e-allgn Lhe AC300/AC312/AC313 maLerlal - CurrenLly AC300 covers Lhe flrsL flve
chapLers of Lhe LexLbook, AC312 covers nlne chapLers, and AC 313 covers 10 chapLers. lf
Lhe flnanclal reporLlng maLerlal ls re-balanced Lhls would permlL more Llme ln AC313 Lo
revlew complex accounLlng lssues. (noLe: 1he lnsLrucLors responslble for

AC300/AC312/AC313 dlscussed course conLenL coverage ln Lhe Lhree llnanclal
8eporLlng core courses and have re-dlsLrlbuLed Lhe course maLerlal.)

Learnlng ob[ecLlve 2 - LvaluaLe accounLlng sysLem for sLrengLhs and weaknesses.

AcLlon lLems:
lor AC 340 AccounLlng lnformaLlon SysLems
1) lncorporaLe more pracLlce problems lnvolvlng evaluaLlon of compuLerlzed accounLlng
lnformaLlon sysLems lnLo Lhe AlS course. locus more on Lhe duLles of dlfferenL Lypes of
employees worklng wlLh compuLerlzed accounLlng lnformaLlon sysLems, and how
segregaLlon of duLles applles Lo compuLerlzed sysLems.
2) LvaluaLe Lhe AlS assessmenL problem for level of complexlLy prlor Lo admlnlsLerlng Lhe
problem. 8e conslsLenL wlLh Lhe assessmenL. LlLher always use a Llmed LesL seLLlng, or
always have lL compleLed as an lndlvldual asslgnmenL ouLslde class wlLh access Lo
references.
lor AC 443 AudlLlng
1) Compare AudlLlng classroom acLlvlLles and asslgnmenLs on conLrol assessmenL wlLh
sprlng and fall 2011 coverage. Look for causes of performance above expecLaLlons as
well as for performance below expecLaLlons.

Learnlng ob[ecLlve 3 - Solve complex accounLlng problems. We need Lo flnd ways Lo lmprove
problem solvlng and reLenLlon of Lechnlcal knowledge covered LhroughouL our courses.

AcLlon lLems
lor AC 301 CosL ManagemenL SysLems:
1) Lnsure LhaL all course secLlons are uslng Lhe crlLlcal Lhlnklng mlnl-case for assessmenL
and have mulLlple mlnl-case asslgnmenLs requlrlng crlLlcal Lhlnklng and analysls.
2) rovlde examples of a good analysls and bad analysls on pracLlce asslgnmenLs clarlfy
expecLaLlons for sLudenLs.
lor AC 313 llnanclal 8eporLlng ll:
1) uevelop a pracLlce seL of exerclses for Lhe sLudenLs. CurrenLly, sLudenLs can easlly access
Lhe answers Lo Lhe LexLbook problems Lhrough Lhe lnLerneL. An alLernaLlve ls uslng
Wlleylus. Powever, Wlleylus does noL relnforce Lhe learnlng (reLenLlon) by wrlLlng
down Lhe [ournal enLrles, worksheeLs, schedules eLc. lf a seL of exerclses ls developed
slmllar Lo Lhe penslon worksheeL exerclse, Lhe sLudenLs may reLaln more by acLually
wrlLlng ouL Lhe requlremenLs. ln Wlleylus Lhere are drop-down boxes" from whlch Lhe
sLudenLs selecL accounLs. 1he sLudenLs need more pracLlce wrlLlng Lhe enLrles down.
2) Survey sLudenLs Lo see whlch Loplcs Lhey flnd more challenglng and would llke Lo focus
more Llme. (noLe: SLudenLs ln AC 313-01 were surveyed.)
3) Compare sprlng 2012 resulLs wlLh fall 2011 Lo see lf an explanaLlon for Lhe hlgher

proporLlon of sLudenLs performlng above expecLaLlons can be found.
4) 8e-allgn Lhe AC300/AC312/AC313 maLerlal - CurrenLly AC300 covers Lhe flrsL flve
chapLers of Lhe LexLbook, AC312 covers nlne chapLers, and AC 313 covers 10 chapLers. lf
Lhe flnanclal reporLlng maLerlal ls re-balanced Lhls would permlL more Llme ln AC313 Lo
revlew complex accounLlng lssues. (noLe: 1he lnsLrucLors responslble for
AC300/AC312/AC313 dlscussed course conLenL coverage ln Lhe Lhree llnanclal
8eporLlng core courses and have re-dlsLrlbuLed Lhe course maLerlal.)

Learnlng ob[ecLlve 4 - We are pleased wlLh Lhe level of awareness of professlonal
responslblllLles demonsLraLed by our AC 300 sLudenLs.

AcLlon lLems:
1) Ask sLudenLs Lo LranslaLe sLandards for professlonallsm and eLhlcal conducL Lo Lhelr
acLlvlLles as sLudenLs.
2) ConLlnue seeklng feedback from flrms lnLervlewlng our sLudenLs on Lhe level of
professlonallsm Lhey demonsLraLe ln Lerms of communlcaLlon and demeanor. Ad[usL
Lhe class Lo address any weaknesses ldenLlfled.

rogram-wlde acLlon lLems:
1) Where sLudenL performance ls below goal, ensure LhaL sLudenLs have more pracLlce ln
Lhe compeLencles belng assessed uslng asslgnmenLs slmllar ln form Lhose used ln Lhe
assessmenLs.
2) Lnsure coordlnaLlon and conslsLency of assessmenL ln secLlons of Lhe same course
LaughL by dlfferenL lnsLrucLors.
3) uocumenL graded wrlLlng asslgnmenLs LhroughouL Lhe accounLlng currlculum. Assess
Lhe adequacy of Lhe level of pracLlce avallable Lo sLudenLs ln preparaLlon for wrlLLen
communlcaLlon demands of a career ln accounLlng.
4) uocumenL graded Lxcel SpreadsheeL asslgnmenLs across Lhe accounLlng currlculum.
Assess Lhe adequacy of Lhe level of pracLlce avallable Lo sLudenLs ln preparaLlon for
wrlLLen communlcaLlon demands of a career ln accounLlng.
3) lurLher lnLegraLe opporLunlLles for oral presenLaLlons wlLhln Lhe accounLlng currlculum.

Append|x: Instruments and kubr|cs
Learn|ng outcome 1) Determ|ne and app|y appropr|ate account|ng standard for a bus|ness
event or c|rcumstance.

AC 313-01 (41499)

Capitalization Criteria
Describe the accounting criteria for capitalizing a lease by a lessee.
Rubric:
4 criteria each worth 3 points = 12 points
Lessee Accounting
The following facts pertain to a non-cancelable lease agreement between Jameson Leasing
Company and Axel Company, a lessee.
Inception date: May 1, 2010
Annual lease payment due at the beginning of
each year, beginning with May 1, 2010 $18,218.66
Bargain purchase option price at end of lease term $3,780
Lease term 5 years

Economic life of Leased Equipment under Capital
Leases
10 years
Lessor's cost $60,700
Fair value of asset at May 1, 2010 $75,700.00
Lessor's implicit rate 12%
Lessee's incremental borrowing rate 12%

The collectibility of the lease payments is reasonably predictable, and there are no important
uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes
responsibility for all executory costs.
PV of annuity due = 4.03735
PV of $1 = 0.56743

a) How should the lease be accounted for by Axel Company? Why?
b) How should the lease be accounted for by Jameson Company? Why?
c) Prepare a lease amortization schedule for Axel Company for the 5 year term.
d) Prepare the journal entries on the lessee's books to reflect the signing of the lease
agreement and to record the payments and expenses related to this lease for the years
2010 and 2011. Axels annual accounting period ends on December 31. Reversing entries
are used by Axel Company.

Rubric:
a) 1 point
b) 1 point
c) Lease liability calculation = 1 point/amortization schedule = 14 points
d) Journal entries = 17 points

Lessor Accounting
On January 1, 2011, Greenspan Corporation, a machinery dealer, leased to Geitner Inc. a
machine that cost $127,000 to manufacture. The lease agreement covers the 6-year useful life of
the machinery and requires 6 equal annual payments of $39,200 payable each January 1,
beginning January 1, 2011. An interest rate of 11% is implicit in the lease agreement.
Collectibility of the rentals is reasonably assured, and there are no important uncertainties
concerning costs. Prepare Greenspans January 1, 2011, journal entries. Present value factor is
4.69590 for an annuity due and the present value factor for an ordinary annuity is 4.23054.
Rubric:
3 entries @ 4 points each = 12 points
Scorlng
> 30 - Above accepLable
36 - 49 - AccepLable
< 33 - 8elow accepLable

AC 313-70 (41511)/AC 313-71 (41512)
Instrument: AC 313 Financial Accounting Research System (FARS) Assignment
Financial Accounting Research Assignment #3
Silver Company is a manufacturer of computers. The company built a computer at a cost of
$90,000. It has signed a lease agreement with Norfolk Company to lease the computer to them.
The lease is for a period of 10 years and the estimated useful life of the computer is 12 years.
The normal selling price of the computer is $139,036 and it has an unguaranteed residual value
at the end of the lease of $10,000. Norfolk will pay $20,000 rent at the beginning of each year.
Executory costs will all be paid directly by Norfolk. Silver Company is reasonably sure that all
rent payments will be received on time and there are no uncertainties about Silvers future
obligations. Silver is charging Norfolk interest at a rate of 10%, which is stated in the lease.
Requirements:
You are a self-employed accountant and the president of Silver Company has asked you about
the proper accounting for this lease. Use the FASB Codification Research System to conduct
research to prepare a response for the president of Silver Company. Your response should be in
the form of a business letter to the president.
Note: In addition to a grade on this assignment this research assignment will be used by the
School of Business to evaluate what students have learned at CCSU during their time here.
These will be evaluated on presentation (writing skills), content (is it correct?), and research (was
the research done correctly?)

Assessment kubr|c: AC 313 - IAS8 Cod|f|cat|on kesearch Memo
ro[ect Assessment: Determ|ne and App|y Appropr|ate
Account|ng Standard for the C|rcumstance

resentat|on:
Above AccepLable: lncludes all accepLable crlLerla. LeLLer ls professlonal and compleLe ln all
respecLs.
AccepLable: CorrecL buslness leLLer formaL, correcL spelllng, grammar, senLence sLrucLure,
loglcal flow, only mlnor errors
8elow AccepLable: MulLlple and/or ma[or devlaLlons from accepLable crlLerla.
Content:
Above AccepLable: lncludes all accepLable crlLerla. AccounLlng LreaLmenL for penslons accuraLe
and compleLe.
AccepLable: CorrecLly descrlbed proper accounLlng LreaLmenL for penslons wlLh only mlnor
errors.
kesearch:
Above AccepLable: lncludes all accepLable crlLerla. CodlflcaLlon reference ls adequaLe and clear.
AccepLable: LeLLer shows proper use of Lhe lAS8 CodlflcaLlon


Learn|ng outcome 2) Lva|uate account|ng systems for |nterna| contro| strengths and
weaknesses.

Instrument AC 340:
Lva|uate Account|ng System for Strengths and Weaknesses

Foi the following case, iuentify contiol weaknesses that woulu allow an employee to
caiiy out the acts uesciibeu. Then, foi each weakness iuentifieu, give contiol activities that
woulu pievent anuoi coiiect the pioblems. Put a heauing "contiol weakness" anu
numbei youi answeis. Then, put a heauing "contiol activities" anu numbei youi answeis.
0n Apiil 1S, }ohn Cannan, an applications uevelopei employeu by Baiuing Co., was
given 2 weeks' notice following some tiouble in the infoimation seivices uepaitment.
Buiing those 2 weeks, Cannan manageu to mouify the payioll piogiams so that aftei entiy
of a piocessing uate aftei Nay 1, no ueuuctions woulu be maue fiom employee paychecks.
Be also mouifieu the billing piogiams to uestioy the foimat of all invoices piinteu by the
computei. Be ueleteu mastei file iecoius of a numbei of the oiganization's laigest
customeis anu ueleteu the back-up copies of the files so the iecoius coulu not be
ieconstiucteu. Cannan then ueleteu the files stoiing the uocumentation foi most of the
applications he hau uevelopeu anu uestioyeu the haiu copies of the uocumentation as well.
Be then pioceeueu to uownloau seveial expensive softwaie packages.
Not satisfieu with his "woik," Cannan went back to the company one night eaily in
Nay anu uamageu seveial pieces of computei haiuwaie anu stole two poitable computeis.
A police investigation, conuucteu some time latei, ievealeu that Cannan hau two pievious
convictions foi employment-ielateu ciimes.

Assessment rubr|c AC 340 - ro[ect Assessment

Above accepLable: ldenLlfled four or more ma[or conLrol weaknesses and
counLermeasures.
AccepLable: ldenLlfled Lhree ma[or conLrol weaknesses and counLermeasures.
8elow AccepLable: ldenLlfled Lwo or fewer conLrol weaknesses and counLermeasures.


Instrument: AC 44S Aud|t|ng A|chemy Interna| Contro| Assessment Case
ueveloped by rlceWaLerhouseCoopers

Assessment rubr|c AC 44S - ro[ect Assessment
(app||ed separate|y to weaknesses and recommended so|ut|ons)
Above accepLable: ldenLlfled flve or more ma[or conLrol weaknesses and flve or more
recommended soluLlons
AccepLable: ldenLlfled Lhree or four ma[or conLrol weaknesses and Lhree or four
recommended soluLlons.
8elow AccepLable: ldenLlfled Lwo or fewer conLrol weaknesses and Lwo or fewer


Learn|ng outcome 3) So|v|ng comp|ex account|ng prob|ems.
Instrument: AC 301 So|v|ng Comp|ex Account|ng rob|ems
To: Consultant
From: John Smith, President
Subject: Profitability and Operations

Tolland Meat Packers is a new company. We raise organic beef and slaughter cows to create
three main products - X (steak), Y (stew), and Z (ground beef) and a byproduct B (spare parts).
Below are the operating statistics (see table below) for our joint meat cutting process during
March 2000, its first month of operations. The costs of the joint process were direct material,
$20,000; direct labor, $11,700; and overhead, $5,000. Products X, Y, and Z are main products; B is
a by-product.
The company's policy is to recognize the net realizable value of any by-product inventory at
split-off and reduce the total joint cost by that amount. Neither the main products nor the by-
product require any additional processing or disposal costs, although management may consider
additional processing.
!"#$%& () *+,"- .+,/" 0)#&- 0)#&-
1234/5&- 13/)4- +& *6,#&7899 1234/5"4 *3,4
X
Y
Z
B

I woulu like to know how piofitable the company is in total if selling anu auministiative costs aie
$Su,uuu. I am consiueiing S methous foi allocating joint costs to piouucts (1) ielative sales value anu (2)
pounus (S) constant gioss maigin methou. Can you calculate the joint cost uistiibution, gioss piofit, anu
inventoiy value unuei each methou anu uiscuss the auvantages anu uisauvantages of each methou foi
financial statement puiposes. Please make a iecommenuation.
I am also consiueiing the following:
A. fuithei piocessing the X steak piouucts into XX beef wellington. It coulu be solu
foi $Su pei unit but the auuitional piocessing costs woulu be $S4,uuu
B. fuithei piocessing Z giounu beef into ZZ mousaka. It coulu be solu foi $7 pei
unit but auuitional piocessing woulu be $S,Suu.

Please calculate the auueu piofitability unuei each option. Nake a iecommenuation about piocessing
each piouuct fuithei anu explain youi iecommenuation.

Assessment: AC 301 So|v|ng Comp|ex Account|ng rob|ems
CrlLlcal 1hlnklng AsslgnmenL CrlLerla: 10 polnLs
1) Crammar ( 2 pLs)
2) resenLaLlon. (1 pL)
4,Suu $66,uuu S,Suu 2,72u
6,7uu 4S,uuu 8,6uu 7,u7u
S,4uu 11,2uu 4,48u S,8uu
2,Suu 2,Suu 4,6uu 4,uuu
3) SLaLe problem (2 pLs )
4) SLaLe how analyzed (1 pL)
3) Analysls (6 pLs)
6) 8ecommendaLlon (3 pLs)
7) SupporL for recommendaLlon (3 pLs)

8ubrlc:
Above accepLable (18-20) Memo ls compleLe ln all respecLs
AccepLable (14-16) Memo ls subsLanLlally correcL wlLh only mlnor errors
8elow accepLable (below 14) Ma[or flaws ln Lhe presenLaLlon and analysls

Learning outcome 3: Solving complex accounting problems.
On January 1, 2012, Cunningham Company has the following defined benefit pension plan
balances.
Projected benefit obligation $4,503,000
Fair value of plan assets 4,217,500
The interest (settlement) rate applicable to the plan is 10%. Other data related to the pension plan
are as follows.
2012
Service costs $168,000
Prior service costs amortization -0-
Contributions (funding) to the plan 245,000
Benefits paid 212,100
Actual return on plan assets 267,200
Expected rate of return on assets 6%
Instructions
(a) Compute the pension expense for the year 2012.
(b) Prepare a pension work sheet inserting January 1, 2012, balances and showing December
31, 2011, balances.
(c) Prepare the journal entry recording pension expense.

Rubric: (50 points- points are noted in the blue circle)

Scorlng:
- > 43 ! Above accepLable
- 31 - 43 ! AccepLable
- < 31 ! 8elow accepLable


Learn|ng outcome 4: 1ransform from a student to an account|ng profess|ona| (|.e.
profess|ona||sm and eth|ca| conduct).

Instrument: AC 300 rofess|ona||sm Assessment
AC 300 Spring 2012 Fraud Cases: Group Project (10% of grade)
The Fraud Group Project will involve researching and presenting to the class fraud related to
their assigned company. Remember, professionalism is a constant theme in this class. That
being the case every group member is expected to do their fair share of the work involved. It is
up to each group how the work shall be delegated however, everyone must participate in
presenting the case to the class. Individuals, who do not participate fairly, will receive a zero for
this project.
Each student will evaluate the group members. If you do not submit an evaluation, you will
receive a 10 point deduction. The evaluation form will be discussed in a later class.
February 23
rd
Groups created and companies assigned to each group.
March 6
th
Each individual is required to submit an essay documenting the following
information related to their company.
Background of the company :
Key players:
o What position they held
o What part they played
What were the specific accounting issues
o What was done, what should have been done
Resolution:
o Consequences (e.g., SEC actions, fines, violations)
Note: The essay should be well written and include an introduction, body (several
paragraphs), and conclusion.
March 15
th
- Arrange to meet with group and start process of allocation of group
responsibilities. The presentation should be 15 20 minutes (no less; no more). All group
members should be actively involved and present some portion of the presentation. Presentations
should include information from above plus any additional information noteworthy related to the
fraud.
On the day of the presentation each Group is required to submit a hard copy of their
presentation. During the presentation, you should dress professionally as if presenting to senior
management of a company.
March 29
th
Each Group submits a hard copy outline (in a Word document) of their
presentation.
Presentations:
April 24
th
Groups I, II, III, and IV
April 26
th
- Groups V, VI, and VII
May 1
st
Submit Group member evaluations
Fraud Case assignments:
Group I: Enron
Group II: Waste Management
Group III: World Com
Group IV: Satyam Computer Services
Group V: Qwest Communications
Group VI: Tyco International
Fraud Case Rubric 100 points
Learning Outcome Transform to a member of the accounting profession (knowledge and
ethics)
Instrument
Fraud Essay (30 points)
Fraud Outline (10 points)
Fraud Powerpoint (10 points)
Oral Presentation (30 points)
Teamwork (20 points)
Fraud Essay - 30 points
9-10 4 - 8 0-3
Writing is organized
and coherent

- Uses a logical
structure
- Sophisticated
transitional
sentences
- Guides the reader
through the
progression of ideas
- May have random
organization, lacking
internal paragraph
coherence
- Uses few or
inappropriate
transitions
- Paragraphs may or
may not have topic
sentences or main
ideas or may to too
general or too
specific.
No appreciable
organization; lacks
transitions and
coherence
5 3 - 4 0 - 2
Spelling and
punctuation
Perfect or near perfect
spelling and
Minor spelling and
punctuation errors
Spelling and
punctuation errors.
punctuation
13 - 15 9 - 12 0 8
Essay answered the
information correctly:
- Introduction
- Background on the
company
- Key players
- Accounting issue
identified
- How should the
accounting issue
have been treated
- Resolution
- Closing/Summary
paragraph

Fraud Outline 10 points
9 - 10 5 - 8 0 - 5
Outline format

- Provides a logical,
general description
of the presentation
- Includes purpose
- Main ideas
- Sufficiently detailed
- Uses the principles
of parallelism,
coordination,
subordination, and
division.
- Perfect or near
perfect spelling and
punctuation
general description
of the presentation
- Includes purpose
- Main ideas
- Uses some of the
principles of
parallelism,
coordination,
subordination, and
division.
- Minor spelling and
punctuation errors
- Does not provide a
logical, general
description of the
presentation.
- Lacks purpose and
main ideas.
- Not sufficiently
detailed
- Does not possess
the principles of
parallelism,
coordination,
subordination, and
division
- Spelling and
punctuation errors.


Fraud Powerpoint 10 points
9 - 10 5 - 8 0 - 5
Powerpoint slides

- Professional looking
- Clearly communicates
information
- Font large enough to
be read in the back of
the room
- Uses key words and
phrases
- Perfect or near perfect
spelling and
punctuation
- Professional
looking
- Clearly
communicates
information
- Font large enough
to be read in the
back of the room
- Uses key words
and phrases
punctuation
- Spelling and
punctuation errors
Oral Presentation 30 points
27 - 30 21 - 26 0 - 20
Individual
presentation
- Appearance and dress is
professional and
conservative
- Exhibits poise and confidence
during the presentation
- Demonstrates eye contact
with the audience
- Does not read presentation
- Stands still with good
posture
- Speaks loudly and pace is
not rapid
- Is well prepared
- Some aspects of
appearance and dress is
are not professional
- and
conservative
- Lacks some aspects
of poise and confidence
during the
presentation
- Does not always
demonstrates eye
contact
with the audience
- May read some of
the presentation
- May not always
stands still with
good posture
- Voice may be soft or
speaks too fast
- Is prepared
- Not prepared
- Not professionally
dressed
- Lacks confidence
- No eye contact
- Reads presentation
- Voice too soft


Teamwork 20 points (based on feedback from team members; they will assess each other)
18 - 20 14 - 17 10 - 14 0 - 10
Well prepared in
advance
Takes a large part in
setting group goals
and agendas
Actively participates
in discussion and
asks questions
Listens actively and
shows
understanding by
paraphrasing or by
acknowledging and
building
on others ideas
Draws out ideas or
concerns of others,
especially those
who have said little
Re-visits issues or
ideas that need more
attention
Helps the group stay
on track
Summarizes group
decisions and action
assignments
Volunteers willingly
and carries own
share of the groups
responsibilities
Well prepared in
advance
setting group goals
and agendas
in discussion and
asks questions
shows understanding
by paraphrasing or
by acknowledging
and building
on others ideas
and carries own
share of the groups
responsibilities

Moderately
prepared in
advance
Takes some part in
setting group goals
and agendas
Participates in
discussions, letting
others provide the
direction
Occasionally
introduces
information or asks
questions
If likely to be
absent or late,
informs others
ahead of time and
arranges to cover
own
responsibilities

Little or no advance
preparation
Lets others set and
pursue the agenda
Observes passively
and says little or
nothing
Responds to
questions
Gives the
impression of
wanting to be
somewhere else
Attendance record
is haphazard and
inconsistent; may
be absent or late
without notice

Scorlng:

90-100 - Above accepLable
70-89 - AccepLable
less Lhan 70 - 8elow accepLable
Accounting: BSBA Goals Assessed in Accounting Spring 2012 Results
1
Department: Account|ng
Goa|: 8S8A-1-Account|ng - MasLery of 8uslness knowledge: Lach funcLlonal area
(AccounLlng, llnance, Law, ManagemenL, MarkeLlng and MlS) ldenLlfles Lhe performance
ob[ecLlves of lLs respecLlve dlsclpllne.
Sect|on Cne - Learn|ng Cutcome and Numer|c kesu|t.
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Apply business research skills AC211 257 9 45 (18%) 184 (72%) 28 (11%)

_________________________________________________________________________

1he flnanclal sLaLemenL analysls pro[ecL ls used Lo assess each sLudenL's buslness research skllls,
analyLlcal skllls, crlLlcal Lhlnklng and Leam-bulldlng skllls. Lach sLudenL was asslgned Lo analyze
Lhe flnanclal sLaLemenLs of a company. Lach lndlvldual professor selecLed Lhe companles for
analysls so LhaL Lhere would noL be sLudenLs ln dlfferenL secLlons worklng LogeLher and/or
copylng each oLher's work. AfLer calculaLlng and lnLerpreLlng Lhe flnanclal raLlos, Lhey were
asked lf Lhey would lnvesL and lend Lo Lhe company Lhey were analyzlng. Lach class was
asslgned flve Lo slx companles Lo analyze. 1he pro[ecL lncluded lndusLry raLlos provlded by Lhe
professor.

As noLed ln Lhe above Lable, over 89 of Lhe sLudenLs performed aL an accepLable level or
above ln sprlng 2012. 1he proporLlon of sLudenLs scorlng accepLable or above was sllghLly
hlgher Lhan Lhe 83 ln fall 2011 and sprlng 2011, Lhe dlfference belng a greaLer proporLlon of
accepLable performance and a lower percenLage permlng below accepLable. Powever,
slgnlflcanLly fewer sLudenLs performed aL an above accepLable level ln Lhe sprlng 2012 (18)
and fall 2011 (19) Lhan ln sprlng 2011 (28).


erformance on Lhls learnlng ob[ecLlve exceeds our goal of aL leasL 80 performlng aL an
accepLable level or beLLer. 1he proporLlon of sLudenLs performlng aL an accepLable level or
beLLer ln sprlng 2012 was an lmprovemenL over whaL had been conslsLenL resulLs of roughly
83 of sLudenLs performlng aL accepLable or above slnce fall 2009. Powever, as noLed above,
Lhe marked drop-off ln Lhe proporLlon of sLudenLs scorlng above accepLable from sprlng 2011
LhaL we encounLered durlng Lhe fall 2011 semesLer was noL reversed ln Lhe sprlng 2012
semesLer. 1here was no slgnlflcanL change ln Leachlng pedagogy, and unllke fall 2011, Lhere
were no slgnlflcanL dlsrupLlons durlng Lhe sprlng 2012. AL Lhls polnL Lhe hlgh proporLlon of
sLudenLs achlevlng above accepLable resulLs durlng Lhe sprlng 2011 was an anomaly.
2

Cur focus has been on ralslng Lhe performance of weaker sLudenLs Lo aL leasL an accepLable
level. Pavlng achleved LhaL for well over 80 of sLudenLs perhaps we need Lo devoLe more
aLLenLlon Lo geLLlng our beLLer sLudenLs Lo achleve superlor resulLs.


1he performance of sLudenLs on Lhls learnlng goal ls aL a reasonably hlgh level, exceedlng our
LargeL for Lhls learnlng goal. We are currenLly devoLlng our lmprovemenL efforLs Lo oLher
learnlng goals where performance ls poorer. Powever, we should develop sLraLegles Lo fosLer
above accepLable performance.

AcLlon lLems:
1. ulscuss sLraLegles for encouraglng and leadlng beLLer sLudenLs Lo hlgher levels of
performance.

3

Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
3) Interpret external financial
statements
AC211 257 9 48 (19%) 171 (66%) 36 (15%)


SLudenLs musL demonsLraLe Lhe Lechnlcal knowledge and analyLlcal ablllLy Lo correcLly compuLe
flnanclal raLlos and show LhaL Lhey undersLand Lhelr meanlng. 1hey musL demonsLraLe crlLlcal
Lhlnklng skllls by maklng declslons on wheLher or noL Lhey would lnvesL ln or lend Lo Lhe
company. ln oLher words, Lhey musL adopL Lwo dlfferenL perspecLlves and defend and explaln
Lhe declslon Lhey make ln each perspecLlve. ln 2009 Lhrough Sprlng 2010, sLudenLs performed
beLLer on Lhe lnvesLlng declslon Lhan Lhey dld on Lhe lendlng declslon. CreaLer emphasls on Lhe
lender's perspecLlve, rlsks and rewards ln course coverage has ellmlnaLed LhaL gap. ulfferences
beLween Lhe lnvesLlng declslons are now mlnlmal. Comparlng Lhe lnvesLlng and lendlng resulLs,
we've had a dlfference of 3 or less ln Lhe proporLlon of sLudenLs ln each performance
caLegory. We have assessed Lhe declslons separaLely, buL reporL an average of Lhe Lwo scores
ln Lhe above Lable. 8eglnnlng fall 2012 we wlll change Lo a slngle overall assessmenL of Lhls
learnlng ouLcome.

1hls semesLer Lhe percenLage of sLudenLs wlLh an accepLable or beLLer response was almosL
ldenLlcal Lo Lhe fall 2011 semesLer: 83 percenL of Lhe sLudenLs had valld reasons on wheLher
Lo lnvesL and 86 percenL had valld reasons on wheLher Lo lend Lo Lhe company Lhey are
analyzlng versus 83 and 84 respecLlvely lasL semesLer. 1hese resulLs exceeded Lhe sprlng
2011 resulLs when 79 of sLudenLs were accepLable or beLLer on Lhe lnvesLmenL declslon and
77 were accepLable or beLLer on Lhe lendlng declslon. As ln fall 2011, Lhe sprlng 2012 resulLs
exceed Lhe goal of 80 of sLudenLs achlevlng aL leasL accepLable performance. Powever, Lhe
proporLlon of sLudenLs performlng aL an above accepLable level dropped from 24 ln fall 2011
Lo 19 ln sprlng 2012.


4
CrlLlcal 1hlnklng: 1o demonsLraLe adequaLe crlLlcal Lhlnklng skllls, sLudenLs had Lo reference,
calculaLe, and lnLerpreL raLlos for Lhelr company ln maklng declslons on wheLher or noL Lhe
sLudenL would lnvesL ln or lend Lo Lhe company. As noLed above, Lhe proporLlon of sLudenLs
performlng aL an accepLable level exceeded our goal and was essenLlally unchanged from fall
2011. 1he below accepLable sLudenLs are unable Lo connecL Lhe lndlvldual quesLlons on Lhe
flnanclal sLaLemenLs and Lhe flnanclal raLlos Lhey calculaLed Lo Lhe lendlng and lnvesLlng
declslons. We belleve LhaL Lhe sLudenLs should be uslng oLher references (such as Lrends,
lndusLry raLlos, and compeLlLlve companles) and oLher flnanclal and non-flnanclal lnformaLlon
abouL Lhe company and lndusLry Lo provlde conLexL and augmenL Lhelr flnanclal analysls when
maklng Lhelr declslon. 1he hlgher proporLlon of sLudenLs LhaL achleved above accepLable
performance ln fall 2011 was noL repeaLed ln sprlng 2012.

AnalyLlcal skllls: 1he ma[orlLy of sLudenLs were able Lo calculaLe Lhe flnanclal sLaLemenL raLlos
approprlaLely. MosL ofLen, Lhelr lnLerpreLaLlon was [usL Lhe meanlng of Lhe raLlo Laken from
Lhe LexLbook. 1hey dld noL connecL Lhe raLlo Lo Lhe company Lhey were analyzlng.

1eam bulldlng skllls: Lach sLudenL was asslgned Lo a group and was requlred Lo compare each
sLudenL's company Lo Lhe oLher companles ln Lhe group on cerLaln raLlos. MosL Leams worked
well LogeLher.


Lach semesLer dlfferenL lnsLrucLors Leach Lhls course so we would advlse LhaL each lnsLrucLor
go over Lhe pro[ecL when coverlng ChapLer 3 ln Lhe LexLbook. We would also recommend LhaL
each lnsLrucLor go Lhrough ChapLer 13 brlefly Lo lnLroduce Lhls chapLer and lLs relevance Lo Lhe
pro[ecL. Lach lnsLrucLor ls allowed Lo use an lndusLry of Lhelr own chooslng. Some lndusLrles
may be easler Lo analyze or easler for Lhe sLudenLs (largely sophomores) Lo relaLe Lo. 1he
acLlon lLems are Lhe same as lasL semesLer, wlLh a parLlcular emphasls on provldlng guldance
for new lnsLrucLors. 1he flrsL Lwo acLlon lLems are prlmarlly malnLenance, recognlzlng a hlgh
changeover of lnsLrucLors ln Lhe lnLroducLory course. As noLed ln Lhe analysls of crlLlcal
Lhlnklng and analyLlcal skllls, Lhe ma[or lssues for weaker sLudenLs were an lnablllLy Lo connecL
Lhe raLlo analysls Lo Lhe declslons and a lack of undersLandlng Lhe meanlng of Lhe raLlos. AcLlon
lLem 3 should address Lhls weakness, so parLlcular emphasls wlll be placed on lLem 3.

AcLlon lLems:
1. 8emlnd lnsLrucLors, especlally new lnsLrucLors, Lo go over Lhe flnanclal sLaLemenL
analysls pro[ecL when coverlng chapLers 3 and 13 durlng Lhe coordlnaLlng meeLlng aL Lhe
beglnnlng of Lhe semesLer.
2. ulscuss lndusLry selecLlon wlLh lnsLrucLors aL Lhe coordlnaLlon meeLlng aL Lhe beglnnlng
of Lhe semesLer. 1ry Lo choose lndusLrles LhaL wlll resonaLe wlLh sLudenLs whlle also
provldlng reasonable raLlos for analysls.
3. Lncourage lnsLrucLors Lo dlscuss Lhe meanlngs of raLlos uslng company examples Lo
5
provlde conLexL and enhance sLudenLs' ablllLles Lo lnLerpreL Lhe raLlos.
6

Append|x
Assessment |nstrument: AC 211 Introduct|on to I|nanc|a| Account|ng Spr|ng 2012
IINANCIAL kLCk1ING & ANALSIS 1LAM kCILC1
(1he |nd|v|dua| port|on of the pro[ect |s used for assess|ng |earn|ng ob[ect|ve 1.1)
(1he responses to |tems 4 & S on the |nd|v|dua| port|on of the pro[ect are used for assess|ng
|earn|ng ob[ect|ve 1.3)

!"#$ #&& '()*!+,*'-() ."/-!" 0-+ ."1'(
'234543678 !9:;<= >$69? @99A BCD
Each peison will be assigneu a company at the beginning of the semestei. You shoulu acquiie the
company's 1u-K at the EBuAR link at the SEC website (www.sec.gov). You shoulu wiite a shoit
iepoit answeiing the following questions about the assigneu company. Foi this pioject, iefei to
youi book especially Chapteis S anu 1S.
IF Y00 N0ST REP0RT A RATI0, A PERCENTAuE, 0R ANSWER IF TBERE BAS BEEN A CBANuEE
0-+ F+)* )G-@ ,#&,+&#*'-(). Please note that this is inuiviuual woik, any inuication of
copying oi plagiaiism woulu iesult in a zeio foi this pioject anu subject to the Acauemic Bonesty
Policy guiuelines. Refei to Chapteis S anu 1S.
1. ueneial infoimation:
1. Wheie is the coipoiate heauquaiteis, what city anu state. Wheie uiu you finu this
infoimation.
2. 0n what uay of the yeai uoes its fiscal yeai enu. Wheie uiu you finu this infoimation.
S. What types of piouucts oi seivices uoes it sellseive. Wheie uiu you finu this infoimation.
4. When anu wheie is the next annual stockholueis' meeting. Wheie uiu you get this
infoimation.
2. Repoit of Inuepenuent Exteinal Auuitoi
1. Who is the coipoiation's inuepenuent auuitoi anu in what city aie they locateu.
2. Boes the auuitoi believe the financial statements weie piesenteu faiily. What statements
in the auuitoi's opinion suppoit youi conclusion.
S. Foi how many yeais uoes it piesent complete balance sheets. Income statements. Cash flow
statements.
4. Income Statement
1. Biu its ievenue (oi sales) inciease oi ueciease ovei the last yeai. What was the peicentage
change.
((this yeai-last yeai)last yeai)
2. Besciibe the company's ievenue iecognition policy. Wheie uiu you finu this. What aie you
some factois that the company useu in ueteimining its ievenue iecognition policy.
S. Biu its cost of goous solu inciease oi ueciease ovei the last yeai. What was the peicentage
change. What aie some ways to ueciease cost of goous solu anu what effect woulu this
have on gioss piofit.
4. Compaie the peicentage change in ievenue to the change in cost of goous solu. Aie they
similai. If they aie not, uoes Nanagement say anything about ievenues anu costs that
7
might explain a uiffeience. If they uo, what ieasons uiu management give foi the change.
(Look in Nanagement Biscussion & AnalysisNB&A)
S. Biu its net income inciease oi ueciease ovei the last yeai. What was the peicentage
change.
6. What methou of uepieciation uoes the company use. Wheie uiu you finu this. What aie
some ieasons that a Company woulu use one methou of uepieciation ovei anothei.
7. What amount is iepoiteu as uepieciation expense foi the cuiient yeai. Wheie uiu you finu
this. Bow much cash was useu to pay foi this expense.
S. Balance Sheet
1. Biu its total assets inciease oi ueciease ovei the last yeai. What was the peicentage
change. What was the laigest asset.
2. Iuentify the balance sheet accounts that weie most significant in explaining the changes in
total assets foi the coipoiation. What events might explain the ieasons foi the changes in
these accounts. Wheie uiu you get this infoimation.
6. Cash Flow Statement
1. Biu the company have a cash inflow oi outflow fiom opeiating activities. Which statement
uiu you use to finu this. What item(s) causeu it to be an inflow oi outflow.
2. Biu the company have a cash inflow oi outflow fiom investing activities. What was the
laigest item in investing activities (eithei a use of cash oi souice of cashiepoit the
laigest).
S. Biu the company have a cash inflow oi outflow fiom financing activities. What was the
laigest item in financing activities (eithei a use of cash oi souice of cashiepoit the
laigest).
7. Piofitability iatios
1. Compute the asset tuinovei iatio anu explain its meaning.
2. Compute the net piofit maigin iatio foi the latest thiee yeais anu explain its meaning. Bo
you see any tienu.
S. Compute the company's gioss piofit peicentage foi the latest thiee yeais; is theie a tienu
ovei the thiee yeais.
4. Compute the ietuin on equity (R0E) foi the last thiee yeais. Explain its meaning. Is theie a
tienu inuicateu.
S. In compaiison to the pievious yeai, has the coipoiation impioveu its ability to geneiate a
piofit. }ustify youi answei with the iatios you calculateu in b, c anu u. Boes management
offei an explanation foi any changes oi stability in the piofitability of the coipoiation.
6. What is the basic eainings pei shaie foi continuing opeiations as it appeais in the income
statement foi the past two yeais. Was the change in EPS a iesult of changes in the
numeiatoi oi uenominatoi.
8. Liquiuity
1. Compute the company's cuiient iatio foi the last two yeais anu explain its meaning. Is the
cuiient iatio auequate.
2. Compute the company's ieceivable tuinovei foi the last two yeais anu explain its meaning.
S. What amount of inventoiy uoes the company have at the enu of the yeai. Biu it inciease oi
ueciease ovei the last yeai. Wheie uiu you finu this.
4. Compute the inventoiy tuinovei iatio. Bow is a low oi high tuinovei iatio significant.
S. What inventoiy costing methou uoes the company use. Wheie uiu you finu this.
9. Solvency iatios
1. Compute the uebt-to-asset iatio foi the last two yeais anu explain its meaning. Bow uiu the
uebt position change ovei the last yeai. What weie the souices of these changes. Woulu
potential lenueis piefei the uebt to total assets iatio to be laigei oi smallei. Why.
2. Compute the times inteiest eaineu foi the past two yeais anu explain its meaning.
8
1u. Woulu you invest in this company. Why oi why not. Suppoit youi answei.
11. Woulu you lenu this company money. Why oi why not. Suppoit youi answei.
)6HI4=? =J9 K;88;L42M ;2 @99A BC
1. Youi answeis to the all questions 1-11. Label anu numbei the answeis to the questions.
2. A copy of the foui financial statements (uo not incluue the notes).
S. }ust staple youi pioject, uo not put in a foluei.
N897O9 2;=9?
BP F7A9 =L; Q;:49O ;K R;6< <9:;<=E ;29 =; H9 J72393 42 =; =J9 :<;K9OO;<E =J9
O9Q;23 =; H9 6O93 42 =J9 *97I N<;S9Q=P *J9 '234543678 <9:;<= L488 2;= H9
<9=6<293 =; R;6P
TP &7=9 :<;S9Q=O L488 2;= H9 7QQ9:=93P *; H9 7OO4M293 =; 7 M<;6:E R;6 I6O= O6HI4=
R;6< :<;S9Q= ;2 =J9 369 37=9P

*97I N<;S9Q=: >$69? @99A BUD
Aftei you submit youi Inuiviuual Repoit, you will be assigneu to a gioup. Each membei of the
gioup woulu have woikeu on a uiffeient company foi theii inuiviuual iepoit.
1. Piepaie a table with columns useu foi the companies (latest yeai) anu inuustiy, anu
iows foi each of the following items you calculateu:
4a Peicentage change in ievenues
4c Peicentage change in cost of goous solu
4e Peicentage change in income
Sa Peicentage change in assets
7a Asset tuinovei
7b Net piofit maigin
7c uioss piofit peicentage
7u Retuin on equity
8a Cuiient iatio
8b Receivable tuinovei
8c Inventoiy tuinovei
9a Bebt to asset iatio
9b Times inteiest eaineu
9
0se the table to help you wiite a iepoit compaiing anu contiasting the companies anu
the inuustiy iatios (wheie applicable) on these items. 0se the copy of youi inuiviuual
iepoit anu the iatios pioviueu in the back of the assignment to piepaie this table.
2. Evaluate the companies using the inuustiy iatios founu on Inuustiy Ratio Repoit foi
Restauiants (the inuustiy is SIC S812) which is attacheu.
S. Befoie you piepaie the iepoit, evaluate each company's iesults foi ieasonableness. If a
company is veiy uiffeient fiom the othei companies, theie may be a mistake. If it is
veiy uiffeient (i.e. not a mistake), tiy to finu out why anu iepoit it.
4. Which company appeais to be the best investment anu why.
S. Which company woulu you lenu money to anu why.
)6HI4= ;2 F7R B
1. The table on iequiiement 1 anu youi answeis to questions 2-S above. Theie is no neeu to
attach youi inuiviuual iepoits.
#334=4;278 '2O=<6Q=4;2O?
! The inuiviuual iepoits aie uue on Apiil 4 anu team iepoits aie uue on Nay 1. The inuiviuual
iepoit will not be ietuineu, keep a copy foi youiself anu foi piepaiing the team iepoit.
Both the inuiviuual anu team iepoits "typeu". A copy of the foui Financial Statements (but
not the Financial Notes) foi youi company shoulu be attacheu to inuiviuual iepoits. Any
figuies useu fiom these iepoits shoulu be highlighteu oi ciicleu in coloieu ink so that the
ieviewei can easily tiace amounts anu infoimation tofiom the Pioject to the 1u-K.
! Nake suie that you 'ieau' the 1u-K. A lot of the infoimation to answei youi questions can
be gleaneu fiom it anu you can use it to assist you in answeiing youi question foi the
pioject as long as you cite it piopeily. If you attempt to hunt anu peck foi the answeis (oi
use "Ctil F") anu not use the infoimation piesenteu in the 1u-K, such as management's
uiscussion anu analysis, youi pioject will be auveisely affecteu.
! Any iueas, paiaphiasing oi quoting neeus to be Q4=93 723 K;;=2;=93!! 0sing thoughts,
woius oi phiases that aie not youi own without citing the piopei souice is plagiaiism.
! Inuiviuual iepoits count 7u% anu the team iepoit Su% towaiu each stuuent's oveiall giaue
foi the pioject.
! Each stuuent will evaluate hishei team membei contiibution to the pioject anu must be
submitteu with the gioup pioject on the uue uate. The piofessoi may use this evaluation to
ieuuce the team membei's "team" giaue.
! 0se the Foim 1u-K fiom the latest yeai (shoulu have been submitteu in 2uu7 oi 2uu8).
! Please use piopeily constiucteu sentences, giammai (i.e. spelling, punctuation anu use of $
signs), anu logical ieasoning. Bo not use ciiculai ieasoning. Nake suie that you answei the
questions as to "why" the numbeis have changeu. While it is ok to uefine something, please
uo not think that is an answei. Put the time, thought anu effoit into answeiing the
questions. If you go foi the minimum answei, you giaue will ieflect the minimum effoit.
Nake suie that you have youi team membeis ieau youi pioject as sometimes you will not
see something obvious as you aie the authoi.
! Piesentation uoes count.

10

Inuustiy: RESTA0RANTS
ANN0AL RATI0 REP0RT
Souice: Compustat
LIQ0IBITY
Cuiient Ratio u.9
Quick Ratio u.61
ACTIvITY
Inventoiy Tuinovei S6.87
Receivables Tuinovei S6.6S
Total Asset Tuinovei 1.22
Aveiage Collection Peiiou (Bays) 1u
Bays to Sell Inventoiy 1u
0peiating Cycle (Bays) 2u
PERF0RNANCE
SalesNet Piopeity, Plant & Equip 1.81
SalesStockholuei Equity 2.67
PR0FITABILITY
0peiating Naigin Aftei Bepi (%) 1u.47
Pietax Piofit Naigin (%) 1u.7
Net Piofit Naigin (%) 7.26
Retuin on Assets (%) 8.6S
Retuin on Equity (%) 19.S9
Retuin on Investment (%) 11.9S
LEvERAuE
Inteiest Coveiage Befoie Tax 8.4
Inteiest Coveiage Aftei Tax 6.u2
Long-Teim BebtCommon Equity (%) 62.11
Long-Teim BebtShihlui Equity(%) 62.u4
Total BebtInvesteu Capital (%) 4u.S8
Total BebtTotal Assets (%) 29.41
Total AssetsCommon Equity 2.24

#, TBB #OO9OOI92= !6H<4Q? $9I;2O=<7=93 .6O429OO !9O97<QJ )A488O

!"#$% !''%()*"+%: Reseaich exceeueu iequiiements; all of the "Acceptable" ciiteiia
accomplisheu; ieseaicheu auuitional infoimation about the company oi inuustiy.
!''%()*"+%: Reseaich met iequiiements; 1u-K ietiieveu; financial statements utilizeu foi
most of the calculations; NB&A utilizeu anu citeu; footnotes citeu; auuit iepoit uate
pioviueu.
11
,%+#- !''%()*"+%: Reseaich uiu not meet iequiiements; financial summaiies (iathei than
financial statements) useu foi significant amount of the uata; NB&A not utilizeu noi
citeu; footnotes iaiely citeu, if at all.

#, TBB #OO9OOI92= !6H<4Q? '2=9<:<9=42M "V=9<278 /4272Q478 )=7=9I92=O

Ciiteiia
Above acceptable: ieasons foi investinglenuing aie above anu beyonu Satisfactoiy; incluueu
compaiisons to inuustiy ANB piioi yeais
Acceptable: ieasons foi investinglenuing aie backeu up by iefeiences to appiopiiate iatios;
Below acceptable: ieasons foi investinglenuing aie incoiiect (inconsistent with iatios) oi
ieasons aie not given.

12
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
2) Apply proper accounting
standards and proper cost
accounting concepts to solve
problems
AC 211
AC 212

247
175

9
7
93 (37%)
51 (29%)
104 (43%)
76 (44%)
50 (20%)
48 (27%)
______________________________________________________________________________

All nlne secLlons of AC 211 (lnLroducLlon Lo llnanclal AccounLlng) and seven secLlons of AC 212
(lnLroducLlon Lo Managerlal AccounLlng) were requlred Lo lnclude a common (Lo Lhe respecLlve
courses) seL of LwenLy mulLlple-cholce quesLlons as parL of Lhelr flnal examlnaLlon. 1hese
quesLlons were welghLed 30-40 of each lnsLrucLor's flnal examlnaLlon. ln boLh AC 211 and AC
212, Lhe Lhreshold number of quesLlons Lo be answered correcLly for accepLable performance
was ad[usLed from 14 down Lo 12, and Lhe Lhreshold number of quesLlons Lo be answered
correcLly for accepLable performance was ad[usLed from 18 down Lo 16. 1he new performance
Lhresholds are conslsLenL wlLh Lhose used ln Lhe llnance ueparLmenL. AL Lhe same Llme, we
ralsed our LargeL proporLlon of sLudenLs achlevlng an accepLable level of performance or beLLer
from 70 Lo 80. 8esulLs from prlor semesLers have been resLaLed Lo reflecL Lhe new
performance Lhresholds for comparaLlve purposes.

1he medlan score for AC 211 was 13 (mean score 14.8), and [usL under 80 of Lhe sLudenLs
achleved an accepLable score (aL leasL of 12 quesLlons answered correcLly) or beLLer. 1hls ls [usL
below Lhe goal of 80 of sLudenLs achlevlng an accepLable or beLLer score, buL an lmprovemenL
over fall 2011, when 73 of sLudenLs were above accepLable. lall was an lmprovemenL over
sprlng 2011 when only 39 of sLudenLs scored aL an accepLable level or beLLer.

1he medlan score for AC 212 was 14 (mean score 13.4), and only 73 of Lhe sLudenLs achleved
an accepLable score (aL leasL of 12 quesLlons answered correcLly) or beLLer. AlLhough well
below Lhe goal of 80 of sLudenLs performlng aL an accepLable level or beLLer, Lhe resulLs
reversed Lhe decllne ln performance we encounLered ln fall 2011 and lL exceeded Lhe sprlng
2011 performance.


13
A number of lnlLlaLlves were lmplemenLed ln AC 211 durlng sprlng 2012. 1he emphasls on
lnsLrucLors' uslng Lhe onllne homework manager avallable Lhrough Lhe LexLbook's publlsher
was conLlnued from lall 2011, when many lnsLrucLors recelved Lralnlng ln Lhe use of Lhe
homework manager. A common flnal exam revlew was lnsLlLuLed among all nlne secLlons
lncludlng lnsLrucLlon on answerlng mulLlple-cholce quesLlons, and sLudenLs were encouraged Lo
sLudy uslng Lhe LexLbook's sofLware wlLh a pracLlce seL of quesLlons. 1he dlsLrlbuLlon of
sLudenL scores for AC 211 ls shown ln Lhe Lable below:

AC 211: Intiouuction to Financial Accounting Peicentage of Total Stuuents
Spiing 2u11 Fall 2u11 Spiing 2u12
Well above acceptable (9u% oi moie coiiect) 7% 1u% 1S%
Above acceptable (8u-89% coiiect) 14% 1S% 22%
Acceptable (7u-79% coiiect) 16% 29% 2u%
Naiginally acceptable (6u-69% coiiect) 22% 2u% 22%
Below acceptable (fewei than S9% coiiect) 41% 2S% 2u%

1he blggesL shlfL ln fall 2011 was ln sLudenLs Lhe proporLlon of sLudenLs movlng from marglnally
accepLable Lo accepLable and almosL as many moved from unaccepLable Lo accepLable. WlLh
Lhe added revlew sesslons and Lhe pracLlce exam ln sprlng 2012 a greaLer proporLlon of
sLudenLs moved from accepLable level Lo good or excellenL performance, and Lhere was a
smaller lmprovemenL ln Lhe proporLlon of sLudenL wlLh unaccepLable performance.

Several changes were made ln AC 212 durlng Lhe fall semesLer. A new LexLbook was
lnLroduced, and use of Lhe onllne homework manager and LearnSmarL, an onllne lnLeracLlve
learnlng program was adopLed ln all secLlons. 1oplc coverage ln Lhe course was sllghLly
modlfled and correspondlngly Loplc coverage of Lhe common quesLlons was modlfled. A new
seL of common quesLlons was drawn from Lhe LesL bank of Lhe newly adopLed LexL, alLhough
mosL were slmllar Lo Lhe prevlous common quesLlons. 1he lmplemenLaLlon of Lhese changes
was affecLed by class cancellaLlons due Lo sLorms. ln sprlng 2012, Lhe use of Lhe homework
managers was emphaslzed and revlew sesslons and pracLlce LesL quesLlons were employed ln
mosL secLlons. 1he dlsLrlbuLlon of sLudenL scores for AC 212 ls shown ln Lhe Lable below:

AC 212: Intiouuction to Nanageiial Accounting Peicentage of Total Stuuents
Spiing 2u11 Fall 2u11 Spiing 2u12
Well above acceptable (9u% oi moie coiiect) 2% 2% 7%
Above acceptable (8u-89% coiiect) 1S% 12% 22%
Acceptable (7u-79% coiiect) 26% 17% 24%
Naiginally acceptable (6u-69% coiiect) 29% Su% 2u%
Below acceptable (fewei than S9% coiiect) Su% S9% 27%

Cur AC 212 Leam had been seeklng alLernaLlve means Lo assess sLudenLs' ablllLy Lo apply proper
accounLlng concepLs Lo solve problems. We also noLed LhaL many sLudenLs have dlfflculLy
movlng from concepL Lo appllcaLlon and aL leasL some sLudenLs seem Lo have dlfflculLy movlng
from worklng wlLh spreadsheeLs Lo performlng compuLaLlons by hand. AfLer some
experlmenLaLlon wlLh a comprehenslve case (sprlng 2011) and mlnl-cases (fall 2011 and sprlng
14
2012), aL our sprlng 2012 reLreaL our Leam declded Lo reLaln Lhe common mulLlple-cholce
quesLlons assessmenL. Lnd of semesLer revlew sesslons were employed ln flve of Lhe seven
class secLlons and a seL of pracLlce mulLlple-cholce quesLlons was dlsLrlbuLed for revlew ln Lhree
of Lhe class secLlons. ln Lwo class secLlons Lhe enLlre exam was comprehenslve. ln mosL
secLlons Lhe flnal exam has a comprehenslve porLlon (usually only Lhe 20 common mulLlple-
cholce quesLlons used ln assessmenL) and Lhe balance of Lhe exam covers recenL Loplcs.

1he sprlng resulLs, whlle sLlll well below goal, were Lhe besL we have had slnce we began Lhe
assessmenL. SecLlons LhaL had revlew sesslons, pracLlce mulLlple-cholce quesLlons slmllar Lo
Lhose on Lhe flnal, and a greaLer comprehenslve emphasls on Lhe flnal exam had slgnlflcanLly
beLLer sLudenL performance Lhan sLudenL secLlons LhaL dld noL.

1he sLudenLs' responses Lo each quesLlon were also analyzed. uesplLe Lhe overall low scores ln
fall 2011, sLudenLs performed beLLer on quesLlons requlrlng Lhem Lo apply concepLs Lo compuLe
answers (60 correcL vs. 44 correcL) Lhan ln Lhe sprlng 2011. erformance lmproved Lo 64
correcL on compuLaLlonal quesLlons ln sprlng 2012. 1he weak fall 2011 performance on
reflecLlve quesLlons LesLlng baslc knowledge and comprehenslon from 48 correcL Lo 38
correcL. SLudenL performance was pooresL on quesLlons relaLed Lo varlable cosLlng, [ob cosLlng
performance measuremenL, and on a concepLual quesLlon on relevanL cosLs.


8esulLs for AC 211 are nearly aL goal. 1he LwenLy mulLlple-cholce quesLlons wlll be revlewed
agaln Lo ensure adequacy of knowledge assessmenL. 1he encouraglng resulLs from Lhe revlew
sesslons and Lhe pracLlce seL have encouraged Lhe AC 211 Leam Lo expand Lhelr use durlng Lhe
fall 2012 semesLer. 1hey are also conslderlng embeddlng Lhe common quesLlons on exams
LhroughouL Lhe semesLer raLher Lhan havlng all of Lhem on Lhe flnal. 1hls would compllcaLe Lhe
daLa collecLlon for assessmenL because some sLudenLs drop Lhe class before Laklng all Lhe
exams. 1hey are also plannlng Lo expand Lhe use of revlew sesslons and plloL Lhe use of on-llne
learnlng modules on dlfflculL Loplcs.

AC 211 lnsLrucLors also felL LhaL Lhere should be some Lype of gradlng mechanlsm Lo ensure
LhaL sLudenLs LhaL perform very poorly on Lhe common quesLlons do noL pass Lhe course.
8equlrlng a mlnlmum accepLable grade on Lhe common flnal quesLlons mlghL geL some
sLudenLs Lo expend more efforL on Lhese quesLlons, whlch represenL only a porLlon of Lhelr flnal
exam. no declslon was reached on a pollcy ln Lhls area, and lLs effecL on Lhe assessmenL
ouLcomes should noL be as greaL lf Lhe assessmenL quesLlons are spread LhroughouL Lhe
semesLer.

AC 212 lnsLrucLors plan Lo deploy Lhe pracLlces LhaL ylelded Lhe besL resulLs across all secLlons
ln Lhe fall 2012 semesLer. ln addlLlon Lhe speclflc responses Lo quesLlons LhaL gave sLudenLs Lhe
mosL Lrouble wlll be analyzed Lo galn lnslghL lnLo common flaws ln sLudenLs' reasonlng
processes. MeLhods Lo encourage sLudenL pracLlce and make mosL effecLlve use of LearnSmarL
and Lhe onllne homework managemenL sysLem wlll be dlscussed and employed.
15

8ecause we were noL happy wlLh Lhe resulLs of Lhe comprehenslve case, we are explorlng Lhe
posslblllLy of uslng a serles of problem-solvlng mlnl-cases, wlLh Lhe flnal case belng used for
assessmenL. As we were already changlng Lhe LexLbook and Lrylng Lhe onllne homework
managemenL sysLem and lnLeracLlve learnlng Lool (ConnecL & LearnSmarL) we declded noL Lo
move away from Lhe common 20 quesLlon assessmenL Lhls year. We are LesLlng Lhe use of
mlnl-cases durlng Lhe sprlng 2012 semesLer, as a rlcher assessmenL of sLudenLs' ablllLy Lo apply
proper cosL and managerlal accounLlng concepLs Lo solve problems. Powever, we wlll be
reLalnlng Lhe LwenLy common quesLlon assessmenL whlle we evaluaLe Lhe mlnl-cases.

AcLlon lLems
lor AC 211
1. Cnce agaln revlew Lhe LwenLy mulLlple-cholce quesLlons Lo ensure adequacy of
knowledge assessmenL.
2. Lxpand Lhe number of mulLlple-cholce quesLlons ln Lhe pracLlce seL.
3. Cn a Lrall basls (posslbly durlng a summer sesslon class) embed Lhe common quesLlons
ln exams LhroughouL Lhe semesLer. erhaps repeaL Lhe same common quesLlons or a
seL of slmllar common quesLlons on Lhe flnal exam Lo compare wlLh sLudenL
performance on Lhe embedded quesLlons.
4. Lxpand Lhe use of revlew and LuLorlng sesslons (ouLslde class Llme). Lmploy Lhe
sesslons LhroughouL Lhe semesLer.
3. lloL shorL onllne learnlng modules coverlng dlfflculL Loplcs.
lor AC 212
1. Cnce agaln revlew Lhe LwenLy common mulLlple-cholce quesLlons for clarlLy and falrness
and Lo ensure adequacy of knowledge assessmenL.
2. 8evlew Lhe mosL common wrong answers on Lhe common mulLlple-cholce quesLlons Lo
ldenLlfy weaknesses ln Lhe sLudenLs' approaches Lo problem solvlng or lack of
undersLandlng of concepLs, develop counLer-measures.
3. ulssemlnaLe successful sLraLegles Lo make besL use of Lhe use of Lhe onllne homework
manager (ConnecL) and encourage use of Lhe lnLeracLlve learnlng Lool (LearnSmarL).
4. use a pracLlce seL across all secLlons Lo glve sLudenLs pracLlce answerlng mulLlple-cholce
LesL quesLlons and Lo ldenLlfy common gaps ln sLudenL knowledge and common
weaknesses ln Lhelr approach Lo problem solvlng.
3. use revlew sesslons Lo prepare for Lhe flnal.
6. Lnsure Lhe comprehenslve porLlon of Lhe flnal ls welghLed heavlly enough Lo geL
sLudenLs Lo lnvesL slgnlflcanL Llme ln preparaLlon.
16

Append|x

#, TBB W69O=4;2 )9=P
1. When Lhe fuLure beneflLs of exlsLlng asseLs are used up ln Lhe ordlnary course of buslness:
A) a loss ls recorded.
8) a credlL Lo a llablllLy ls recorded.
C) a deblL Lo asseLs ls recorded.
u) an expense ls recorded.

2. 1he separaLe enLlLy assumpLlon means:
A) each separaLe owner's flnances musL be revealed ln Lhe flnanclal sLaLemenLs.
8) each separaLe enLlLy LhaL has a clalm on a company's asseLs musL be shown ln Lhe
flnanclal sLaLemenLs.
C) a company's flnanclal sLaLemenLs reflecL only Lhe buslness acLlvlLles of LhaL company.
u) All of Lhese.

3. Cn !uly 1, 2003, lcespresso lnc. slgned a Lwo-year $8,000 noLe recelvable wlLh 9 percenL
lnLeresL. AL lLs due daLe, !uly 1, 2007, Lhe prlnclpal and lnLeresL wlll be recelved ln full. lnLeresL
revenue should be reporLed on lcepresso's lncome sLaLemenL for Lhe year ended uecember 31,
2003, ln Lhe amounL of:
A) $420.
8) $1,440.
C) $360.
u) $720.

4. A company's balance sheeL conLalned Lhe followlng lnformaLlon:

Assumlng noLes ayable ls Lhe only oLher lLem on Lhe balance sheeL, noLes ayable musL equal
Lo
A) $72,000.
8) $200,000.
C) $344,000.
u) $8,000.

3. lf an expense has been lncurred buL wlll be pald laLer, Lhen:
A) an asseL accounL ls decreased or ellmlnaLed and an expense ls recorded.
8) a revenue and an expense are recorded.
C) a llablllLy accounL ls creaLed or lncreased and an expense ls recorded.
u) noLhlng ls recorded on Lhe flnanclal sLaLemenLs.

17
6. Clven Lhe followlng daLa, whaL ls Lhe endlng lnvenLory?
Sales revenue $1,980,000
8eglnnlng lnvenLory 380,000
CosL of goods sold 1,290,000
urchases 1,170,000
a. $260,000
b. $380,000
c. $690,000
d. $310,000

7. 1he lnLernal conLrol prlnclple relaLed Lo separaLlng employees' duLles so LhaL Lhe work of one
person can be used Lo check Lhe work of anoLher person ls called:
A) lndependenL lnLernal verlflcaLlon.
8) roLaLlon of duLles.
C) dupllcaLlon of responslblllLy.
u) segregaLlon of duLles.

8. A company expecLs Lo use equlpmenL LhaL cosL $48,000 for Len years and Lhen sell lL for
$6,000. uslng Lhe sLralghL-llne meLhod, Lhe company should reporL depreclaLlon for Lhe
equlpmenL of:
A) $8,400 per year.
8) $9,600 per year.
C) $4,200 per year.
u) $4,800 per year.

9. ?our company buys a compuLer sysLem from l8M for $3 mllllon and pays l8M $200,000 Lo
lnsLall Lhe compuLer sysLem. ?our company should record:
A) $2.8 mllllon ln equlpmenL and Lhe resL ln expenses.
8) $3.2 mllllon ln equlpmenL.
C) $3.2 mllllon ln expenses.
u) $3 mllllon ln equlpmenL and $200,000 ln expenses.

10. A dance sLudlo accepLs $1,300 Lo provlde a serles of dance lessons Lo a youLh group durlng Lhe
monLh of !uly. 1he sLudlo decldes Lo record Lhe revenue ln !uly. 1he sLudlo declded Lo record
Lhe !uly expenses of renL, uLlllLles and salarles ln AugusL, when lL pays for Lhem. Cne or boLh of
Lhese declslons:
A) vlolaLe Lhe accounLlng equaLlon.
8) vlolaLe Lhe maLchlng prlnclple.
C) are an example of accrual accounLlng.
u) vlolaLe Lhe revenue prlnclple.

18
11. All oLher Lhlngs equal, ln whlch of Lhe followlng cases would an analysL rank Lhe company mosL
favorably?
A) 1he company has Lhe lowesL debL-Lo-asseLs raLlo ln Lhe lndusLry as well as Lhe lowesL
asseL Lurnover raLlo whlle lLs proflL margln ls Lhe hlghesL.
8) 1he company has Lhe lowesL debL-Lo-asseLs raLlo ln Lhe lndusLry as well as Lhe hlghesL
proflL margln and asseL Lurnover raLlo.
C) 1he company has Lhe hlghesL debL-Lo-asseLs raLlo ln Lhe lndusLry as well as Lhe hlghesL
proflL margln whlle lLs asseL Lurnover raLlo ls Lhe lowesL.
u) 1he company has Lhe hlghesL debL-Lo-asseLs raLlo ln Lhe lndusLry as well as Lhe hlghesL
proflL margln and asseL Lurnover raLlo.

12. Whlch of Lhe followlng buslnesses would reporL Lhelr cosL of goods LhaL Lhey sold on Lhelr
lncome sLaLemenLs?
A) A large accounLlng flrm
8) An auLomoblle dealershlp
C) A bank
u) A compuLer repalr company
L) All of Lhe above

13. A company flles a lorm 10-k wlLh Lhe SLC Lo submlL lLs:
A) reporL of currenL evenLs of flnanclal lmporLance.
8) press releases.
C) quarLerly reporL.
u) annual reporL.

14. 1he LllC lnvenLory cosLlng meLhod assumes LhaL Lhe cosL of Lhe unlLs mosL recenLly purchased
are:
A) noL asslgned Lo cosL of goods sold or endlng lnvenLory.
8) Lhe flrsL Lo be asslgned Lo cosL of goods sold.
C) Lhe lasL Lo be asslgned Lo cosL of goods sold.
u) Lhe flrsL Lo be asslgned Lo endlng lnvenLory.

13. Clnno Company reporLed neL lncome of $20,000 for Lhe year ended uecember 31, 2003.
uurlng Lhe year, lnvenLorles decreased by $7,000, accounLs payable decreased by $8,000,
depreclaLlon expense was $10,000, and accounLs recelvable lncreased by $6,300. neL cash
provlded by operaLlons ln 2003, compuLed uslng Lhe lndlrecL meLhod, was:
A) $22,300.
8) $38,300.
C) $31,300.
u) $10,300.

16. Cash flows from lnvesLlng acLlvlLles lnclude cash:
A) lnflows from Lhe sale of long-Lerm lnvesLmenLs.
8) cash lnflows from Lhe sale of a company's own sLock Lo lLs sLockholders.
C) ouLflows from Lhe sale of long-Lerm lnvesLmenLs.
u) lnflows and ouLflows reflecLlng revenues and expenses.

19
17. lf x?Z Company had $12 mllllon ln revenue and neL lncome of $3 mllllon Lhen lLs:
A) asseLs musL have been $3 mllllon.
8) expenses musL have been $13 mllllon.
C) expenses musL have been $9 mllllon.
u) asseLs musL have been $12 mllllon.

18. Whlch of Lhe followlng would a company be mosL llkely Lo oversLaLe lf Lhe company was Lrylng
Lo mlslead poLenLlal exLernal lnvesLors or credlLors?
A) Salarles Lxpense.
8) AccounLs 8ecelvable.
C) AccounLs ayable.
u) noLes ayable.

19. A corporaLe charLer speclfles LhaL Lhe company may sell up Lo 20 mllllon shares of sLock. 1he
company sells 12 mllllon shares Lo lnvesLors and laLer buys back 3 mllllon shares. 1he currenL
number of ouLsLandlng shares afLer Lhese LransacLlons have been accounLed for ls:
A) 9 mllllon shares.
8) 8 mllllon shares.
C) 20 mllllon shares.
u) 10 mllllon shares.

20. Cn average, 3 of LoLal accounLs recelvable has been uncollecLlble ln Lhe pasL. AL Lhe end of
Lhe year, balance of accounLs recelvable ls $100,000 and Lhe allowance for doubLful accounLs
has a credlL balance of $300. CredlL sales durlng Lhe year were $130,000. uslng Lhe aglng of
accounLs recelvable meLhod, Lhe esLlmaLed bad debL expense would be:
A) $3,300.
8) lndeLermlnable, Lhe aglng of accounLs recelvable meLhod cannoL be used, because, based
on Lhls lnformaLlon, Lhe percenLage of credlL sales meLhod should be used.
C) $3,000.
u) $4,300.

AC 212 Common uest|ons

1. Whlch of Lhe followlng ls noL an ob[ecLlve of ManagemenL accounLlng?

A. 1o prepare exLernal reporLs for lnvesLors, credlLors, governmenL agencles, and oLher ouLslde
users.
8. 1o provlde lnformaLlon for cosLlng of servlces, producLs, and oLher ob[ecLs of lnLeresL Lo
managemenL.
C. 1o provlde lnformaLlon for plannlng, conLrolllng, evaluaLlng and conLlnuous lmprovemenL.
u. 1o provlde lnformaLlon for declslon-maklng.

2. LasL monLh, when 10,000 unlLs of a producL were manufacLured, Lhe cosL per unlL was $60. 1oLal
varlable cosLs were $300,000 and LoLal flxed cosLs were $300,000. lf 10,300 unlLs are manufacLured
nexL monLh, Lhe:
20

A. LoLal varlable cosL wlll remaln unchanged.
8. flxed cosLs wlll lncrease ln LoLal.
C. varlable cosL per unlL wlll lncrease.
u. flxed cosL per unlL wlll decrease.
3. Supply cosLs aL LaLLea CorporaLlon's chaln of gyms are llsLed below:
CllenL-vlslLs Supply CosLs
March 11,647 $28,361
Aprll 11,443 $28,393
May 11,973 $28,819
!une 12,088 $28,892
!uly 11,707 $28,622
AugusL 11,193 $28,221
SepLember 11,987 $28,820
CcLober 11,678 $28,378
november 11,826 $28,703

ManagemenL belleves LhaL supply cosL ls a mlxed cosL LhaL depends on cllenL-vlslLs. uslng Lhe hlgh-
low meLhod Lo esLlmaLe Lhe varlable and flxed componenLs of Lhls cosL, Lhose esLlmaLes would be
closesL Lo:

A. $2.44 per cllenL-vlslL, $28,623 per monLh
8. $1.33 per cllenL-vlslL, $12,768 per monLh
C. $0.79 per cllenL-vlslL, $19,321 per monLh
u. $0.73 per cllenL-vlslL, $19,826 per monLh

4. Cabruk lnc. ls a merchandlslng company. LasL monLh Lhe company's merchandlse purchases LoLaled
$88,000. 1he company's beglnnlng merchandlse lnvenLory was $13,000 and lLs endlng merchandlse
lnvenLory was $13,000. WhaL was Lhe company's cosL of goods sold for Lhe monLh?

A. $88,000
8. $90,000
C. $86,000
u. $116,000

3. Whlch of Lhe followlng ls Lhe correcL formula Lo compuLe Lhe predeLermlned overhead raLe?

A. LsLlmaLed LoLal unlLs ln Lhe allocaLlon base dlvlded by esLlmaLed LoLal manufacLurlng overhead
cosLs.
8. LsLlmaLed LoLal manufacLurlng overhead cosLs dlvlded by esLlmaLed LoLal unlLs ln Lhe allocaLlon
base.
C. AcLual LoLal manufacLurlng overhead cosLs dlvlded by esLlmaLed LoLal unlLs ln Lhe allocaLlon
base.
u. LsLlmaLed LoLal manufacLurlng overhead cosLs dlvlded by acLual LoLal unlLs ln Lhe allocaLlon
base.
21
6. 1he followlng daLa have been recorded for recenLly compleLed !ob 674 on lLs [ob cosL sheeL. ulrecL
maLerlals cosL was $2,039. A LoLal of 32 dlrecL labor-hours and 173 machlne-hours were worked on
Lhe [ob. 1he dlrecL labor wage raLe ls $14 per labor-hour. 1he company applles manufacLurlng
overhead on Lhe basls of machlne-hours. 1he predeLermlned overhead raLe ls $13 per machlne-
hour. 1he LoLal cosL for Lhe [ob on lLs [ob cosL sheeL would be:

A. $2,967
8. $2,487
C. $2,068
u. $3,112

7. 1he break-even polnL ln unlL sales lncreases when varlable expenses:

A. lncrease and Lhe selllng prlce remalns unchanged.
8. decrease and Lhe selllng prlce remalns unchanged.
C. decrease and Lhe selllng prlce lncreases.
u. remaln unchanged and Lhe selllng prlce lncreases.

8. 8uLLeco CorporaLlon has provlded Lhe followlng cosL daLa for lasL year when 100,000 unlLs were
produced and sold:

8aw maLerlals $200,000
ulrecL labor $100,000
ManufacLurlng overhead $200,000
Selllng and admlnlsLraLlve expense $130,000

All cosLs are varlable excepL for $100,000 of manufacLurlng overhead and $100,000 of selllng and
admlnlsLraLlve expense. 1here are no beglnnlng or endlng lnvenLorles. lf Lhe selllng prlce ls $10 per
unlL, Lhe neL operaLlng lncome from produclng and selllng 110,000 unlLs would be:

A. $430,000
8. $383,000
C. $403,000
u. $360,000

9. neL operaLlng lncome reporLed under absorpLlon cosLlng wlll exceed neL operaLlng lncome reporLed
under varlable cosLlng for a glven perlod lf:

A. producLlon equals sales for LhaL perlod.
8. producLlon exceeds sales for LhaL perlod.
C. sales exceed producLlon for LhaL perlod.
u. Lhe varlable manufacLurlng overhead exceeds Lhe flxed manufacLurlng overhead.

22
10. Moore Company produces a slngle producL. uurlng lasL year, Moore's varlable producLlon cosLs
LoLaled $10,000 and lLs flxed manufacLurlng overhead cosLs LoLaled $6,800. 1he company produced
3,000 unlLs durlng Lhe year and sold 4,600 unlLs. 1here were no unlLs ln Lhe beglnnlng lnvenLory.
Whlch of Lhe followlng sLaLemenLs ls Lrue?

A. 1he neL operaLlng lncome under absorpLlon cosLlng for Lhe year wlll be $800 hlgher Lhan neL
operaLlng lncome under varlable cosLlng.
8. 1he neL operaLlng lncome under absorpLlon cosLlng for Lhe year wlll be $344 hlgher Lhan neL
C. 1he neL operaLlng lncome under absorpLlon cosLlng for Lhe year wlll be $344 lower Lhan neL
u. 1he neL operaLlng lncome under absorpLlon cosLlng for Lhe year wlll be $800 lower Lhan neL

11. uslng only unlL-based acLlvlLy drlvers Lo asslgn non-unlL-relaLed overhead cosLs can cause:

A. efflclency
8. producL dlverslLy
C. acLlvlLy sharlng
u. dlsLorLed producL cosLs

12. eLlLLe CorporaLlon has provlded Lhe followlng daLa from lLs acLlvlLy-based cosLlng sysLem:

AcLlvlLy CosL ool 1oLal CosL 1oLal AcLlvlLy
Assembly $612,360 31,000 Machlne hours
rocesslng orders $33,431 1,300 Crders
lnspecLlon $100,217 1,690 lnspecLlon hours

uaLa concernlng Lhe company's producL k34A appear below:

Annual unlL producLlon and sales 410
Annual machlne hours 700
Annual number of orders 30
Annual lnspecLlon hours 30
ulrecL maLerlal cosL per unlL $43.67
ulrecL labor cosL per unlL $31.24

Accordlng Lo Lhe acLlvlLy-based cosLlng sysLem, Lhe average cosL of producL k34A ls closesL Lo:

A. $112.64 per unlL
8. $114.99 per unlL
C. $116.98 per unlL
u. $76.91 per unlL

23

13. Whlch of Lhe followlng ls not a beneflL of budgeLlng?

A. lL reduces Lhe need for Lracklng acLual cosL acLlvlLy.
8. lL seLs benchmarks for evaluaLlon performance.
C. lL uncovers poLenLlal boLLlenecks.
u. lL formallzes a manager's plannlng efforLs.

14. resLwlch Company has budgeLed producLlon for nexL year as follows:

__________________CuarLer_________________
llrsL Second 1hlrd lourLh
roducLlon ln unlLs 60,000 80,000 90,000 70,000

1wo pounds of maLerlal A are requlred for each unlL produced. 1he company has a pollcy of
malnLalnlng a sLock of maLerlal A on hand aL Lhe end of each quarLer equal Lo 23 of Lhe nexL
quarLer's producLlon needs for maLerlal A. A LoLal of 30,000 pounds of maLerlal A are on hand Lo
sLarL Lhe year. 8udgeLed purchases of maLerlal A for Lhe second quarLer would be:

A. 82,300 pounds
8. 163,000 pounds
C. 200,000 pounds
u. 203,000 pounds

13. 1he purpose of a flexlble budgeL ls Lo:

A. remove lLems from performance reporLs LhaL are noL conLrollable by managers.
8. permlL managers Lo reduce Lhe number of unfavorable varlances LhaL are reporLed.
C. updaLe Lhe sLaLlc plannlng budgeL Lo reflecL Lhe acLual level of acLlvlLy of Lhe perlod.
u. reduce Lhe amounL of confllcL beLween deparLmenLs when Lhe masLer budgeL ls prepared.

16. Cummer PosplLal bases lLs budgeLs on paLlenL-vlslLs. 1he hosplLal's sLaLlc budgeL for lebruary
appears below:

8udgeLed number of paLlenL-vlslLs 9,900
8udgeLed varlable overhead cosLs:
Supplles ([$6.60 per paLlenL-vlslL) $ 63,340
Laundry ([$6.30 per paLlenL-vlslL 64,330
1oLal varlable overhead cosL 129,690
8udgeLed flxed overhead cosLs:
Wages and salarles 83,140
Cccupancy cosLs 76,230
1oLal flxed overhead cosL 161,370
1oLal budgeLed overhead cosL $ 291,060
24

1he LoLal overhead cosL aL an acLlvlLy level of 10,800 paLlenL-vlslLs per monLh should be:

A. $317,320
8. $303,810
C. $291,060
u. $302,830

17. 8esldual lncome ls a beLLer measure for performance evaluaLlon of an lnvesLmenL cenLer manager
Lhan reLurn on lnvesLmenL because:

A. Lhe problems assoclaLed wlLh measurlng Lhe asseL base are ellmlnaLed.
8. deslrable lnvesLmenL declslons wlll noL be re[ecLed by dlvlslons LhaL already have a hlgh 8Cl.
C. only Lhe gross book value of asseLs needs Lo be calculaLed.
u. reLurns do noL lncrease as asseLs are depreclaLed.

18. Average operaLlng asseLs are $110,000 and neL operaLlng lncome ls $23,100. 1he company lnvesLs
$23,000 ln new asseLs for a pro[ecL LhaL wlll lncrease neL operaLlng lncome by $4,730. WhaL ls Lhe
reLurn on lnvesLmenL (8Cl) of Lhe new pro[ecL?

A. 21
8. 19
C. 18.3
u. 20

19. A general rule ln relevanL cosL analysls ls:

A. varlable cosLs are always relevanL.
8. flxed cosLs are always lrrelevanL.
C. dlfferenLlal fuLure cosLs and revenues are always relevanL.
u. depreclaLlon ls always relevanL.

20. A sLudy has been conducLed Lo deLermlne lf roducL A should be dropped. Sales of Lhe producL LoLal
$200,000 per year, varlable expenses LoLal $140,000 per year. llxed expenses charged Lo Lhe
producL LoLal $90,000 per year. 1he company esLlmaLes LhaL $40,000 of Lhese flxed expenses wlll
conLlnue even lf Lhe producL ls dropped. 1hese daLa lndlcaLe LhaL lf roducL A ls dropped, Lhe
company's overall neL operaLlng lncome would:

A. decrease by $20,000 per year
8. lncrease by $20,000 per year
C. decrease by $10,000 per year
u. lncrease by $30,000 per year

Assessment kubr|c: Learn|ng ob[ect|ve 1.2 - AC 211 & AC 212
Above accepLable: 16-20 correcL.
AccepLable: 12-13 correcL.
25
8elow AccepLable: 11 or fewer correcL.
26
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
4) Apply spreadsheet skills AC212 177 7 83 (47%) 62 (35%) 32 (18%)


SLudenLs were asslgned a budgeLlng pro[ecL requlrlng each sLudenL Lo bulld a compleLe seL of
masLer budgeL schedules for four quarLers lncludlng annual LoLals for a manufacLurlng
company. SLudenLs demonsLraLed Lhelr spreadsheeL skllls by developlng approprlaLe cell
formulae, uslng cell referenclng Lo llnk budgeL schedules Lo avold dupllcaLe enLry of daLa and
provlde auLomaLlc updaLlng for changes ln assumpLlons, and by modlfylng dlsplay seLLlngs for
readablllLy and professlonal appearance.

As shown ln Lhe Lable ln secLlon 1, 82 of sLudenLs performed aL an accepLable level or above,
down sllghLly from 84 ln fall 2011 and 83 durlng Lhe sprlng 2011 semesLer. 1he resulLs
sllghLly exceed Lhe 80 goal. 1he proporLlon of sLudenLs above accepLable was 47, compared
Lo 44 ln fall 2011 and 46 ln sprlng 2011. 1hese resulLs are essenLlally sLable.


1he School of 8uslness has lnsLlLuLed a SA (sLudenL professlonal advancemenL program) LhaL
lncludes some sesslons on baslc Lxcel concepLs and Lechnlques early ln Lhe semesLer and more
advanced Loplcs laLer ln Lhe semesLer. 8aLher Lhan requlrlng an addlLlonal Lxcel LexL and
asslgnmenLs, we declded Lo use early Lxcel asslgnmenLs Lo ldenLlfy sLudenLs needlng exLra help
ln Lxcel, and Lo dlrecL Lhose sLudenLs Lo sources for Lxcel help, lncludlng Lhe supplemenLal LexL,
on-llne help, or workshops. Cur resulLs have been sLable slnce we made Lhe change. We
should Lrack Lhe exLenL Lo whlch sLudenLs acLually Lake advanLage of Lhe Spa sesslons.


We need Lo conLlnue Lo monlLor Lhe performance of Lhe weaker sLudenLs, and deLermlne
wheLher or noL Lhe sLudenLs ldenLlfled as weak ln Lxcel early ln Lhe semesLer are Laklng
advanLage of Lhe workshops offered Lhrough Lhe SA program.
27

We have declded agalnsL uslng a comprehenslve buslness case for Lhe AC 212 assessmenL, buL
we are explorlng wheLher one or more smaller Lxcel asslgnmenLs may be beLLer Lhan Lhe
budgeLlng pro[ecL Lo assess Lxcel skllls. A change ln Lhe assessmenL Lool would necesslLaLe a
change ln Lhe assessmenL rubrlc. uue Lo Lhe volume of changes ln oLher areas of Lhe course,
we declded noL Lo make any changes ln Lhls assessmenL durlng Lhe 2011-12 academlc year. Cur
currenL focus ls lmprovlng resulLs on learnlng ouLcome 1.2.

AcLlon lLems:
1. ldenLlfy weak performers and see lf Lhey were ldenLlfled as weak Lxcel users early ln Lhe
semesLer, and lf so, dld Lhey Lake advanLage of Lhe Spa workshops or avall Lhemselves of
oLher help bulldlng Lxcel skllls ouLslde class.

28
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
5) Solve problems using
managerial models
AC212 177 7 104 (59%) 57 (32%) 16 (9%)


1he same budgeLlng pro[ecL used Lo assess spreadsheeL skllls ln learnlng ouLcome 4 allows
sLudenLs Lo demonsLraLe Lhelr ablllLy Lo solve problems uslng managerlal models. ln Lhls case,
Lhe sLudenLs bulld a resource acqulslLlon and consumpLlon (masLer budgeL) model ln Lxcel,
modellng Lhe lnLerrelaLlonshlps beLween Lhe flrm's acLlvlLles Lo pro[ecL resource avallablllLy and
resource needs for a year of acLlvlLy. SLudenLs' ablllLy Lo model Lhe flrm's acLlvlLy was assessed
uslng a rubrlc.

compared Lo 90 ln fall 2011 and 86 ln sprlng 2011, well above Lhe 80 goal. ln addlLlon, Lhe
proporLlon of sLudenLs performlng aL an above accepLable level was 39, compared Lo 30 ln
fall 2011 and 42 ln sprlng 2011.


1he resulLs are an lmprovemenL over Lhe fall 2011 resulLs aL Lhe above accepLable level, whlle
Lhe proporLlon of sLudenLs performlng below accepLable remalns low. 1he swlLch Lo Lhe new
LexL may have helped sLudenLs consLrucL Lables more accuraLely and more conslsLenL wlLh Lhe
budgeLlng model.

SLudenL performance was very dlsappolnLlng on Lhe applled budgeLlng quesLlon on Lhe
common flnal ln sprlng 2011. erformance lmproved slgnlflcanLly ln fall 2011, and Lhere was a
small furLher lmprovemenL ln sprlng 2012, buL Lhe absoluLe level of performance on Lhe applled
budgeLlng quesLlon ls sLlll very low, glven Lhe Llme and efforL sLudenLs puL lnLo Lhe budgeLlng
pro[ecL. Many sLudenLs seem Lo have dlfflculLy Lransferrlng whaL Lhey learn uslng Lhe
spreadsheeL model Lo a manual calculaLlon.

Some sLudenLs have dlfflculLy deallng wlLh Lhe dlfferences caused by physlcal lnvenLory ln a
producLlon seLLlng. lor many Lhls ls Lhelr flrsL exposure Lo accounLlng for manufacLurlng raLher
29
Lhan a merchandlslng or servlce envlronmenL.

Whlle we anLlclpaLe conLlnulng Lo asslgn a comprehenslve budgeLlng problem, we are
conslderlng movlng Lo mlnl-cases requlrlng Lhe appllcaLlon of dlfferenL managerlal models Lo
assess Lhls learnlng ouLcome. 1haL efforL has been posLponed Lo Lhe 2012-13 academlc year.


We wanLed Lo see lf Lhe dlfferenL presenLaLlon of Lhe budgeLlng model ln Lhe new LexLbook,
coupled wlLh Lhe use of Lhe (ConnecL) onllne homework manager and LearnSmarL would have
an lmpacL on sLudenLs' ablllLy Lo apply budgeLlng concepLs boLh wlLhln and ouLslde Lhe
spreadsheeL model. 1he performance on Lhe budgeLlng pro[ecL conLlnues Lo lmprove. 1he
sprlng 2012 resulLs lmproved sllghLly on fall resulLs 2011 resulLs on Lhe common flnal quesLlon
buL overall Lhe performance ls sLlll low.

1hls learnlng ouLcome ls really a subseL of Lhe broader learnlng ouLcome 3. and Lhe ouLcome
could be dropped or assessed uslng a smaller asslgnmenL on applylng models Lo solve problems
- uslng Lhe Cv model, for example. We wlll explore uslng mlnl-cases lnvolvlng oLher
managerlal models Lo evaluaLe Lhls learnlng ouLcome.

AcLlon lLems:
1. ldenLlfy exerclses Lo help sLudenLs beLLer relaLe Lo manufacLurlng/producLlon seLLlngs.
2. rovlde more pracLlce on applylng budgeLlng concepLs ouLslde of Lhe budgeLlng pro[ecL.
3. LvaluaLe use of problem solvlng mlnl-cases as an assessmenL Lool for Lhe modellng-
based problem solvlng assessmenL.

30
Append|x
8udget|ng ro[ect Spr|ng 2012

AC 212 lnLroducLlon Lo Managerlal AccounLlng

Pard copy due Apr|| 27, 2012
no laLe submlsslons wlll be accepLed.

SLudenL name:
________________________________________________________________________

l undersLand LhaL Lhls asslgnmenL ls open book and open noLes and ls Lo be comp|eted
!"#!$!#%&''(. l cerLlfy LhaL l have noL used Lhe asslsLance of any oLher lndlvldual(s) ln any form
(verbally, wrlLLen noLes speclflc Lo Lhls asslgnmenL, emall, lM, cell phone eLc.) oLher Lhan my
rofessor. l have read Lhe Academlc PonesLy ollcy lncluded ln Lhe AC 212 syllabus and have
compleLed Lhls asslgnmenL ln accordance wlLh unlverslLy ollcles and Lhe pollcles noLed above.

SLudenL SlgnaLure
______________________________________________________________________

?our name should be Lyped on all sheeLs Lurned ln for evaluaLlon. SLaple all budgeL sheeLs Lo
Lhls cover sheeL.

AfLer l revlew Lhe MasLer 8udgeL and ro lorma llnanclal SLaLemenLs, l may requlre changes lf
new lnformaLlon ls avallable. lease deslgn Lhe MasLer 8udgeL and ro lorma llnanclal
SLaLemenLs Lo allow changes Lo be lncorporaLed easlly and qulckly wlLh Lhe formulas you wlll be
uslng. Also, as Lhls wlll be dlsLrlbuLed Lo varlous levels of managemenL wlLhln Lhe organlzaLlon,
ensure LhaL proper buslness wrlLLen communlcaLlon and Lxcel formaLLlng ls uLlllzed (prlnL ln
landscape uslng dollar slgns, commas, underllnlng, proper llnlng-up of amounLs, correcL
spelllng, eLc.)

AddlLlonal lnformaLlon perLalnlng Lo Lhese Lasks follows ln Lhe aLLached memo.
31

uA1L: March 1, 2012
1C: CCSu ConsulLlng
l8CM: Candlce klmmel, resldenL, klmmel Cnomes
Su8!LC1: MasLer 8udgeL for Lhe flscal year !uly 1, 2012 - !une 30, 2013
-------------------------------------------------------------------------------------------------------------------------------
Cur conLroller, 8lchard klmmel ls negoLlaLlng wlLh poLenLlal new Clay suppllers ln kenLucky. We need
Lhe Large Cnome ulvlslon's MasLer 8udgeL for Lhe flscal year ended !une 30, 2013 for our corporaLe
sLraLeglc plannlng process, and we cannoL walL for 8lchard's reLurn from kenLucky. We would llke you
Lo prepare Lhe Large Cnome ulvlslon's MasLer 8udgeL for Lhe flscal year ended !une 30, 2013.

1he dellverables are as follows:

1. Sales budgeL, lncludlng a schedule of expecLed cash collecLlons.
2. roducLlon budgeL.
3. ulrecL maLerlals budgeL, lncludlng a schedule of expecLed cash dlsbursemenLs for maLerlals.
4. ulrecL labor budgeL.
3. ManufacLurlng overhead budgeL.
6. Lndlng flnlshed goods lnvenLory budgeL calculaLlng Lhe expecLed value of Lhe flnlshed goods
lnvenLory as of !une 30, 2013.*
7. Selllng and admlnlsLraLlve expense budgeL.
8. Cash budgeL.
9. 8udgeLed lncome sLaLemenL for Lhe year ended !une 30, 2013.*
10. 8udgeLed balance sheeL for !une 30, 2013.*

All Lhe MasLer 8udgeL schedules excepL Lhose marked wlLh an asLerlsk for Lhe Large Cnome ulvlslon
should lnclude a column for each quarLer and a LoLal column for Lhe flscal year. We only need annual
LoLals for Lhe budgeLed flnanclal sLaLemenLs (schedules 9 and 10) and we only need a year-end LoLal for
Lhe value of flnlshed goods lnvenLory (schedule 6).

1he hard coples of Lhese budgeL schedules should be dellvered by Aprll 27, 2012. ?ou can prlnL more
Lhan one schedule per page, buL do not have a page break ln Lhe mlddle of a budgeL schedule. l llke Lo
be able Lo vlew an enLlre budgeL schedule wlLhouL fllpplng back and forLh beLween pages. lease also
use a Lype fonL of beLween 10-12 polnLs for prlnLlng. We also need you Lo send us Lxcel spreadsheeL you
use Lo creaLe Lhe budgeL schedules you prlnL so we can use Lhe spreadsheeL as a sLarLlng polnL for fuLure
budgeLs. Send Lhe Lxcel spreadsheeL as an emall aLLachmenL. We need LhaL spreadsheeL flle by Aprll
27, 2012 as well.

l've aLLached a brlef descrlpLlon of Lhe Large Cnome ulvlslon Lo Lhe budgeL daLa 8lchard gave me before
he lefL for kenLucky. We eagerly awalL your resulLs.

Slncerely,

Candlce klmmel
32
1he garden gnomes were flrsL produced ln volume made ln Lhe Cerman Lown of Craefenroda by hllllp
Crlebel back ln Lhe mld-1800s. Carden gnomes qulckly became popular, and Lhelr use as a garden
ornamenL spread from Cermany lnLo lrance and Lngland. WlLh Lhe spreadlng popularlLy of garden
gnomes, numerous gnome manufacLurers sprang up LhroughouL Cermany, wlLh each manufacLurer
developlng Lhelr own parLlcular sLyle and deslgn.
1

1radlLlonal gnomes were made from LerracoLLa clay slurry poured lnLo molds. 1he gnome ls removed
from Lhe mold, allowed Lo dry, and Lhen flred ln a klln unLll lL ls hard. Cnce cooled, Lhe gnome ls palnLed
Lo Lhe level of deLall deslred.
2
Cerman manufacLurers dlsappeared durlng WWll. osL World War ll,
gnome producLlon moved Lo lower cosL counLrles and lower cosL processes and maLerlals were used.
MosL modern gnomes are made from plasLlc reslns uslng ln[ecLlon molds raLher Lhan LerracoLLa.
3

Crlebel's descendanLs are Lhe lasL remalnlng Cerman producers, and Lhey are lasL producers maklng Lhe
LradlLlonal LerracoLLa garden gnomes.
4

klmmel Cnomes, locaLed ln SouLh uakoLa, may be Lhe only oLher
manufacLurer of hlgh quallLy clay garden gnomes LhaL are hand
flnlshed.
3
klmmel Cnomes are sLoneware, raLher Lhan LerracoLLa.
SLoneware uses hlgher-quallLy clay Lhan LerracoLLa and Lhe gnomes are
flred aL hlgher LemperaLure, yleldlng a sLronger, more durable gnome.
1he gnomes are flred lnslde and ouL and are colored wlLh glaze before
flrlng, raLher Lhan belng palnLed afLer flrlng. As a resulL klmmel
gnomes reLaln Lhelr color when exposed Lo Lhe elemenLs and Lhey are
noL affecLed by molsLure or freezlng. 1he Large Cnome ulvlslon
manufacLures and sells gnomes beLween 12 and 13 lnches ln lengLh or
helghL (Lhe Pedgerow Cnome" model ls shown ln Lhe plcLure Lo Lhe
lefL). Many dlfferenL sLyles are made, buL each large gnome requlres
vlrLually Lhe same amounL of Llme and maLerlals.

uurlng 2012-13 flscal year, Lhe average selllng prlce for large gnomes ls expecLed Lo be 580 per gnome.
1he Large Cnome ulvlslon forecasLs Lhe followlng number gnome sales.

Quarter First Second Third Fourth
Gnome sales 45,000 70,000 50,000 75,000

1he collecLlon paLLern for AccounLs 8ecelvable ls as follows:

o 6S percenL of all sales are collecLed wlLhln Lhe quarLer ln whlch Lhey are sold
o 3S percenL of all sales are collecLed ln Lhe followlng quarLer.
o 1here are no bad debLs/uncollecLlbles.

uue Lo hlgher Lhan expecLed demand Lhls year, Lhe Large Cnome ulvlslon expecLs Lo have no flnlshed

1
Source www.squidoo.com/gardengnomes
2
Source www.squidoo.com/gardengnomes
3
Source www.garden.lovetoknow.com/wiki/History_of_Gnomes
4
Source www.garden.lovetoknow.com/wiki/History_of_Gnomes
5
This case is inspired by an actual company, Kimmel Gnomes. See http://www.kimmelgnomes.com/index.html
The gnome shown is a real product made by Kimmel Gnomes. The division and its budget numbers are fictitious.
33
gnomes ln lnvenLory on !uly 1, 2012, Lhe beglnnlng of Lhe flrsL quarLer of Lhe new flscal year. 1o avold
havlng LhaL problem ln Lhe comlng flscal year, Lhe Large Cnome ulvlslon would llke Lo have Lhe endlng
lnvenLory of Cnomes aL Lhe end of each of Lhe flrsL Lhree quarLers equal Lo 30 of Lhe budgeLed sales
for Lhe nexL quarLer. 1hey would llke Lo have 13,000 flnlshed gnomes on hand on !une 30, 2013.

Ending FG inventory in Gnomes
as a % of the next quarters
budgeted sales 30% 30% 30% ?
Ending FG inventory in Gnomes ? ? ? 13,000

Lach large gnome requlres an average of 7 pounds of clay. 1he Large Cnome ulvlslon buys clay for 50.SS
per pound and Lhey expecL Lhe prlce Lo remaln consLanL LhroughouL Lhe year. 1hey expecL Lo have
49,000 pounds of clay on hand as of !uly 1, 2012, Lhe beglnnlng of Lhe flrsL quarLer of Lhe flscal year. AL
Lhe end of each of Lhe flrsL Lhree quarLers, Lhe Large Cnome ulvlslon would llke Lo have Lhelr dlrecL
maLerlals lnvenLory quanLlLy Lo equal 2S percenL of Lhe amounL requlred for Lhe followlng quarLer's
planned producLlon. Cn !une 30, 2013, Lhe end of Lhe flscal year, Large Cnome ulvlslon would llke Lo
have 87,000 pounds of clay on hand.

Ending DM inventory as a %
of the next quarters
production requirement 25% 25% 25% ?
Ending DM inventory in pounds ? ? ? 87,000

1he Large Cnome ulvlslon buys lLs clay on accounL. lL pays for 70 of lLs purchases of dlrecL maLerlals ln
Lhe quarLer ln whlch Lhey were purchased and 30 ln Lhe quarLer afLer Lhey were purchased.

Lach large gnome requlres 1.90 hours (114 mlnuLes) of dlrecL labor. Lmployees engaged ln dlrecL labor
wlll be pald an esLlmaLed 520.00 per labor hour. Wages and salarles are pald on Lhe 13
Lh
and 30
Lh
of
each monLh.

varlable manufacLurlng overhead ls esLlmaLed Lo be 510.00 per dlrecL labor hour for Lhe comlng flscal
year. All varlable manufacLurlng overhead expenses are pald for ln Lhe quarLer lncurred.

llxed manufacLurlng overhead ls esLlmaLed Lo LoLal 5398,000 each quarLer, wlLh 5280,000 ouL of Lhe
LoLal amounL of 5398,000 represenLlng depreclaLlon on machlnery, equlpmenL and Lhe facLory. All
oLher flxed manufacLurlng overhead expenses are pald ln cash ln Lhe quarLer Lhey occur. 1he flxed
manufacLurlng overhead raLe wlll be compuLed by dlvldlng Lhe year's LoLal flxed manufacLurlng
overhead by Lhe year's budgeLed dlrecL labor hours. 8ound Lhe flxed overhead raLe Lo Lhe nearesL
penny.

varlable selllng and admlnlsLraLlve expenses are esLlmaLed Lo be 510.00 per gnome sold. llxed selllng
and admlnlsLraLlve expenses are expecLed Lo LoLal 5106,000 each quarLer, wlLh 514,000 ouL of Lhe LoLal
amounL of 5106,000 represenLlng depreclaLlon on Lhe offlce space, furnlLure and equlpmenL. CLher Lhan
depreclaLlon, all selllng and admlnlsLraLlve expenses are pald for ln Lhe quarLer Lhey occur.

34
Cn !une 30, 2013 Lhe Large Cnome ulvlslon plans Lo buy new machlnery and equlpmenL for 52,200,000.
1he new machlnery and equlpmenL wlll be acqulred aL Lhe very end of Lhe year, so lL wlll noL be used ln
producLlon and sales durlng Lhe comlng year and lL wlll noL be depreclaLed unLll Lhe followlng year. 1he
Large Cnome ulvlslon expecLs Lo pay 20 down and flnance Lhe remalnlng 80 of Lhe equlpmenL cosL
wlLh a noLe payable. no lnLeresL payable wlll accrue on Lhe equlpmenL noLe payable unLll afLer !une 30,
2013.

Large Cnome ulvlslon musL malnLaln a mlnlmum cash balance of $30,000. lf afLer accounLlng for cash
recelpLs and dlsbursemenLs (lncludlng dlvldends) ln Lhe cash budgeL, Lhe budgeLed cash avallable cash
falls below $30,000 ln any quarLer, Lhe Large Cnome ulvlslon wlll need Lo borrow cash. 1he Large
Cnome ulvlslon has arranged a llne of credlL allowlng lL Lo borrow ln $10,000 lncremenLs. Assume
borrowlng wlll Lake place aL Lhe beg|nn|ng of any quarLer ln whlch Lhe avallable cash would oLherwlse
be below $30,000 so LhaL aL no Llme durlng Lhe quarLer wlll Lhe cash balance fall below $30,000. 1he
bank charges Lhe Large Cnome ulvlslon lnLeresL aL Lhe raLe of 1.0 per quarLer (noL compounded). Cn
!une 30, 2013, Lhe Large Cnome ulvlslon wlll pay any lnLeresL due for 2012 on Lhelr llne of credlL. 1hey
wlll also repay Lhe prlnclpal balance on Lhe llne of credlL lf Lhey have sufflclenL cash Lo do so.

As a fully owned subsldlary, Lhe Large Cnome ulvlslon does noL pay lncome Laxes. All lncome Laxes are
charged Lo klmmel Cnomes, Lhe parenL company. Large Cnome ulvlslon wlll pay dlvldends of 5S0,000
each quarLer Lo lLs corporaLe parenL, klmmel Cnomes. 1he dlvldends musL be pald, even lf Lhe Large
Cnome ulvlslon has Lo borrow on lLs llne of credlL Lo make Lhe paymenL

1he budgeLed balance sheeL for Lhe Large Cnome ulvlslon on !une 30, 2012 (whlch ls Lhe same as Lhe
budgeLed balance sheeL aL Lhe beg|nn|ng of buslness !uly 1, 2012) ls presenLed below. klmmel Cnomes
owns 100 of Lhe CaplLal SLock of Lhe Large Cnome ulvlslon.

)*+,-) /01)* +!$!2!3" 4 5,))*6 /01)*7
8-+/*9*+ 8&'&":; 7<;;=
>-0* ?@A B@CB
ASSL1S LIA8ILI1ILS & LUI1
Cash $138,000 AccounLs ayable $96,000
AccounLs 8ecelvable 2,167,000 noLes ayable 0
8aw MaLerlal lnvenLory 26,930 CaplLal SLock 33,700,000
lanL and LqulpmenL 33,300,000 8eLalned Larnlngs 2,033,930

1C1AL ASSL1S 53S,831,9S0 11L LIA8. & SL 53S,831,9S0

35
Assessment kubr|c - AC 212, Introduct|on to Manager|a| Account|ng, Spr|ng 2012
App|y Spreadsheet Sk|||s

Above acceptab|e: lncludes all of accepLable, glven daLa are enLered once and only once ln
Lhe model and are lncorporaLed by cell reference LhereafLer, all compuLaLlons are bullL lnLo
cell formulae, numbers are allgned and formaLs are approprlaLe.
Acceptab|e: 8udgeL schedules are well consLrucLed buL Lhere are lnsLances where lnlLlal
daLa are re-enLered raLher Lhan llnked Lo prlor schedules, budgeL schedules are mosLly well
presenLed buL Lhere are a few lnsLances where formaLs are lnapproprlaLe or labellng ls
unclear.
8e|ow acceptab|e: SpreadsheeL cells are mosLly Lyped raLher Lhan Lhe budgeLlng model
bullL lnLo Lhe spreadsheeL, mlnlmal cell referenclng and cell formulae, schedules noL well
presenLed wlLh unprofesslonal labellng and formaLLlng.

So|ve rob|ems Us|ng Manager|a| Mode|s

#H;59 7QQ9:=7H89? Incluues all of acceptable; the buuget scheuules aie completely
accuiate, oi accuiate except foi a few minoi eiiois (eiiois not involving a
misconception about the company's cost anu ievenue stiuctuie).
#QQ9:=7H89? All the buuget scheuules aie piesenteu anu aie mostly coiiect, but theie
aie one oi two significant eiiois anu some minoi eiiois. The cash buuget anu pio foima
statements contain some eiiois.
.98;L 7QQ9:=7H89? 0ne oi moie buuget scheuules aie missing. 0veiall, the buuget
scheuules uo not ieflect the company's cost anu ievenue stiuctuie anu expecteu iesults.
The cash buuget anuoi pio foima statements have seveial significant eiiois.

36
Goa|: 8S8A-2 - CrlLlcal 1hlnklng: A graduaLe wlll be able Lo evaluaLe, analyze, and lnLerpreL
lnformaLlon Lo solve problems and make buslness declslons.
Learning Outcomes
Course
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Use information to support
analysis
AC212 173 7 75 (43%) 66 (38%) 32 (19%)


We use an eLhlcs essay asslgnmenL Lo evaluaLe sLudenLs' crlLlcal Lhlnklng. ln Lhe pasL we, had
used mlnl-cases from Lhe LexL for Lhls asslgnmenL. ln Lhe sprlng 2011, we Lrled Lo lncorporaLe
more coverage of eLhlcs lnLo Lhe managerlal accounLlng currlculum uslng Lhe !"#$%& ()*+, an
onllne eLhlcs Lralnlng module. SLudenLs compleLed an eLhlcal lens lnvenLory and Lwo cases
lnvolvlng eLhlcal dllemmas ln accounLlng. Whlle we were happy wlLh Lhe eLhlcal lens lnvenLory,
Lhe professors had some lssues wlLh Lhe asslgnmenL and we concluded Lhe cosL Lo Lhe sLudenLs
exceeded Lhe beneflL. WlLh a new LexL Lhls semesLer, Lwo secLlons of Lhe class were assessed
uslng a modlfled mlnl-case asslgnmenL from Lhe new LexL and oLher flve secLlons used a mlnl-
case from an lnsLrucLors' resource webslLe. 1he asslgnmenLs were somewhaL expanded Lhose
ln Lhe scenarlos we had prevlously used, and we consequenLly had Lo modlfy Lhe assessmenL
rubrlc for Lhe crlLlcal Lhlnklng assessmenL. ln sprlng 2012, all secLlons used a mlnl-case
conLalnlng an eLhlcal dllemma for Lhe assessmenL.

As shown ln Lhe Lable ln SecLlon one, 81 of sLudenLs evaluaLed demonsLraLed accepLable
performance or beLLer, meeLlng our goal of aL leasL 80. erformance rebounded from Lhe dlp
we encounLered ln fall 2011 when only 74 of sLudenLs performed aL an accepLable level or
beLLer, and 38 were above accepLable. 1he overall sprlng 2012 performance ls also a sllghL
lmprovemenL over Lhe sprlng 2011 semesLer when 78 of sLudenL responses were [udged
accepLable buL Lhe proporLlon of sLudenLs [udged above accepLable 47 was hlgher ln sprlng
2011.


When we declded Lo drop Lhe LLhlcs Came we replaced LhaL wlLh LLhlcal scenarlos of our own,
so fall 2011 was a LranslLlon semesLer. 1he performance lmproved ln Lhe sprlng. We need Lo
ensure sLudenLs are geLLlng pracLlce on crlLlcal Lhlnklng skllls Lhrough Lhe use of mlnl-cases
prlor Lo assessmenL.

37
We are golng Lo selecL a common asslgnmenL Lo use for assessmenL alLhough pracLlce
asslgnmenLs may vary across secLlons. We wlll documenL dlfferlng class coverage of Lhe eLhlcs
essay and relaLed asslgnmenLs and compare resulLs Lo deLermlne mosL successful pracLlces.
Cur acLlon lLems are Lhe same as lasL semesLer. We wanL Lo make sure we use Lhe same
asslgnmenL for assessmenL across all secLlons for lnLer-raLer rellablllLy. We wanL Lo ensure LhaL
Lhe LexL of Lhe asslgnmenL dlffers from Lhe prlor semesLer, and we wanL Lo ensure a mlnlmum
number of crlLlcal Lhlnklng asslgnmenLs are belng used ln all secLlons.

AcLlon lLems:
1. SelecL a common asslgnmenL for Lhe graded eLhlcs and crlLlcal Lhlnklng assessmenL.
2. 8evlew Lhe rubrlc for clarlLy and accuracy Lo lmprove lnLer-raLer conslsLency.
3. Add more mlnl-cases requlrlng sLudenLs Lo express Lhelr reasonlng ln wrlLlng. 1he
asslgnmenLs should lnclude aL leasL Lwo wlLh an emphasls on eLhlcs, and oLhers (aL leasL
one, ldeally Lwo or more) wlLh a greaLer emphasls flnanclal or oLher buslness ouLcomes.

38

Goa|: 8S8A-3 - LLhlcs and Clobal erspecLlve: A graduaLe wlll be able Lo apply eLhlcal
reasonlng ln domesLlc and global buslness slLuaLlons.
Learning Outcomes
Course(S)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Students will display a
willingness to adhere to ethical
obligations and disclosures of
pertinent information.
AC212 173 7 82 (47%) 62 (38%) 31 (15%)


ln Lhe pasL we had used mlnl-cases presenLlng an eLhlcal dllemma ln Lhe LexL as Lhe asslgnmenL
for evaluaLlng Lhls goal. Lach lnsLrucLor selecLs one of Lhe cases and has Lhe sLudenLs elLher:
wrlLe an essay addresslng Lhe eLhlcal lssues presenLed ln Lhe case, wrlLe a memorandum from
Lhe perspecLlve of one of Lhe acLors ln Lhe case, or wrlLe a memorandum advlslng one of Lhe
acLors ln Lhe case. SLudenLs demonsLraLe Lhelr wllllngness Lo adopL an eLhlcal perspecLlve
approprlaLe for a managemenL or accounLlng professlonal ln a global economy Lhrough Lhelr
analysls and recommendaLlons for resolvlng Lhe dllemma. SLudenL responses were evaluaLed
uslng a rubrlc. We Lrled Lo lncorporaLe more coverage of eLhlcs lnLo Lhe managerlal accounLlng
currlculum durlng Lhe sprlng 2011 semesLer uslng Lhe !"#$%& ()*+, an onllne eLhlcs Lralnlng
module. SLudenLs compleLed an eLhlcal lens lnvenLory and Lwo cases lnvolvlng eLhlcal
dllemmas ln accounLlng. Cverall Lhe faculLy were pleased wlLh Lhe LLhlcal Lens exerclse
provlded by Lhe !"#$%& ()*+. 1hey felL Lhe exerclses generaLed good class dlscusslon, provlded
Lhe sLudenLs wlLh more conLexL for evaluaLlng eLhlcal dllemmas, and made Lhem Lake a more
nuanced vlew of eLhlcal declslon-maklng. 1he faculLy were less pleased wlLh Lhe on-llne case
asslgnmenLs. Some sLudenLs had problems wlLh Lhe lnLerface, and Lhe space and sLrucLure of
Lhe open-ended responses dld noL yleld Lhe quallLy of wrlLlng we were looklng for. More
dlsLresslng, a slgnlflcanL number of sLudenLs (37) dld noL compleLe Lhe on llne asslgnmenL,
Laklng a zero on Lhe asslgnmenL (3-10 of Lhelr grade) raLher Lhan paylng Lhe $29 fee Lo
compleLe Lhe module. 1he $29 was a reduced prlce we negoLlaLed Lo use Lhe !"#$%)- .+/&
0/1+/"234 and Lhe !"#$%& ()*+ cases on a Lrlal basls. Cn a regular basls Lhe !"#$%)- .+/&
0/1+/"234 model alone cosLs $29.

ConsequenLly ln fall 2011 we reverLed Lo uslng eLhlcs scenarlos elLher from Lhe LexL, or from
oLher sources avallable Lo lnsLrucLors. We ended up uslng a scenarlo from a webslLe conLalnlng
accounLlng eLhlcs mlnl-cases for lnsLrucLlonal use ln flve secLlons of Lhe class and a modlfled
39
asslgnmenL from Lhe newly adopLed LexL ln Lwo secLlons of Lhe class. ln sprlng 2012, we
declded all secLlons should use eLhlcs mlnl-cases, and Lhe same mlnl-case should be used for
assessmenL ln all secLlons of Lhe course.

As shown ln Lhe Lable ln SecLlon one, 83 of Lhe sLudenLs evaluaLed demonsLraLed accepLable
performance or beLLer, above our goal of aL leasL 80. lorLy-seven percenL of Lhe sLudenLs
performed aL an above accepLable level.


SLudenL performance ln sprlng 2012 roughly Lhe same as ln Lhe fall 2011 and sprlng 2011
semesLers. LlghLy-Lhree percenL of sLudenLs performed aL an accepLable level 83 aL
accepLable level or above ln boLh fall and sprlng 2011. 1he proporLlon of sLudenLs performlng
aL an above accepLable level was 48 ln fall 2011 and 43 ln sprlng 2011. We have goLLen
slmllar quallLy responses desplLe dropplng Lhe LLhlcal Lens coverage.


AL Lhe Sprlng 2011 assessmenL reLreaL, AC 212 faculLy reporLed on Lhelr experlences Lo daLe
durlng Lhe Sprlng 2011 semesLer. AL LhaL reLreaL we declded Lo dlsconLlnue use of Lhe !"#$%&
()*+5 lnsLead we would reLurn Lo a serles of 2 - 3 mlnl-cases, uslng Lhe flnal case for our
assessmenL. uurlng Lhe fall 2011 we used a modlfled asslgnmenL from Lhe new LexL for Lhe
assessmenL ln Lwo secLlons and a case drawn from a professlonal daLabase of cases ln flve
secLlons. 1he number of pracLlce cases or asslgnmenLs requlrlng slmllar eLhlcal reasonlng varled
across secLlons. ln sprlng 2012 we declded Lo sLandardlze Lhe assessmenL mlnl-case, selecLlng
one mlnl-case from ouLslde Lhe LexL each semesLer Lo use for assessmenL.

We need Lo agree on a common case each semesLer Lo use for assessmenL purposes, and have
aL leasL one slmllar pracLlce asslgnmenL ln each class secLlon prlor Lo Lhe assessmenL. Cur
acLlon lLems are ldenLlcal Lo Lhose for 8S8A Coal 2, learnlng ouLcome 1. Cur focus wlll be on
geLLlng conslsLenL LreaLmenL across secLlons.

AcLlon lLems:
asslgnmenLs should lnclude aL leasL Lwo wlLh an emphasls on eLhlcs, and oLhers wlLh a
greaLer emphasls flnanclal or oLher buslness ouLcomes.

40

Append|x
Assessment rob|em: Used for 8S8A goa| 2 outcome 1, and 8S8A Goa| 3 outcome 1

Budgetary Slack
Topic: Budgeting/Standard Setting

Characters: Jennifer, a cost accountant working in a manufacturing division of a large
Corporation.

Ron, the budgeting and standards supervisor and Jennifers superior in the
accounting department.

Jennifer has been working on next years budgets for some of the divisions products. After
Ron looked over her work, he called her into his office.

Ron: Jennifer, the budgets look pretty good, except that your estimates of materials costs
seem too low.

Jennifer: I checked with production and engineering people, and they told me they expect
materials costs to be down. They are trying some new procedures which are almost certain to
reduce materials waste and damage significantly.

Ron: Its too soon to know how much materials costs will drop, or even if they will be
lower. I want you to redo the budget with materials costs about where they have been for this
year. Then if materials costs are lower next year, the division will beat the budget and look
good. There may be some good bonuses next year.

Jennifer: Using the current materials quantities puts slack into the budget for next year.

Ron: Most managers try to get some slack into budgets. Theres nothing wrong with that.
Since the new procedures are still experimental, they havent been reported to corporate
headquarters. This is a perfect opportunity to get an easy budget. I know thats what the
division controller expects and wants. Get the revisions to me as soon as you can.
Requirement
Acting as an independent ethical advisor to Jennifer, draft a formal business memo which addresses in
detail each of the items listed below:
What are the relevant facts
What are the ethical issues (when identifying the issues, provide references to specific section
numbers and titles in the IMA Statement of Professional Practice which is posted as a Word
Document in Vista)
Who are the primary stakeholders
What are the possible alternatives
What course of action should Jennifer take (to support your recommendation, provide references
to specific section numbers and titles in the IMA Statement of Professional Practice which is
41
posted as a Word Document in Vista to support your opinion)
Cr|t|ca| 1h|nk|ng - Use Informat|on to Support Ana|ys|s

#H;59 7QQ9:=7H89 - All of acceptable; Iuentifies anu focuses on the most impoitant
infoimation. Coiiectly iuentifies all piimaiy stakeholueis. Key facts aie iuentifieu,
uiscusseu, anu veiy well linkeu to ielevant legal anu ethical stanuaius. Iuentifies possible
alteinatives anu aigues convincingly in a coheient uiscussion. Any unceitainties aie
acknowleugeu anu appiopiiately auuiesseu. Assumptions aie ieasonable anu well
explaineu.
#QQ9:=7H89 - Facts aie uiscusseu anu linkeu to ielevant legal anu ethical stanuaius. Nost
piimaiy stakeholueis aie iuentifieu. Alteinative couises of action aie iuentifieu.
Aigument is consistent with anu iefeis to the uiscussion of the facts.
.98;L #QQ9:=7H89 - veiy limiteu uiscussion of facts with little oi no link to ielevant
ethical anu legal stanuaius. Significant stakeholueis aie not incluueu in the uiscussion. A
couise of action is iecommenueu without uiscussing oi iuentifying alteinatives, oi the
aigument is uisoiganizeu, oi contains some contiauictoiy oi unsuppoiteu asseitions.

Lth|cs and G|oba| erspect|ve - Students D|sp|ay a W||||ngness to Adhere to
Lth|ca| Cb||gat|ons and D|sc|osures of ert|nent Informat|on

#H;59 7QQ9:=7H89 X All of acceptable applicable legal iequiiements anu coues of ethics
aie iecognizeu anu well uiscusseu. Legal anu ethical iamifications (compliance oi
noncompliance) of theii choice oi iecommenuation aie completely auuiesseu. The choice
oi iecommenuation fully satisfies ielevant legal anu ethical obligations.
#QQ9:=7H89 X Basic iecognition of applicable legal iequiiements anu coues of ethics. Legal
anu ethical iamifications (compliance oi noncompliance) of theii choice oi
iecommenuation aie at least biiefly auuiesseu. The choice oi iecommenuation shows
intent to fulfill legal anu ethical obligations.
.98;L 7QQ9:=7H89 X Failuie to iecognize applicable legal iequiiements oi coues of ethics.
Choice oi iecommenuation fails to fulfill legal anu ethical obligations.

42

Ma[or Leve| keport|ng - based on Ia|| 2012 data

Department: Ma[or-Account|ng
reamb|e: SLudenLs who graduaLe from Lhe AccounLlng Ma[or should possess compeLencles
and skllls needed for enLry and advancemenL ln Lhe accounLlng professlon.
Sect|on Cne - Learn|ng Cutcomes and Numer|c kesu|ts.
As evldence LhaL Lhey possess Lhe compeLencles and skllls needed for enLry and advancemenL
ln Lhe accounLlng professlon, we expecL sLudenLs Lo be able Lo:
1. Determ|ne and app|y the appropr|ate account|ng standard(s) for a bus|ness event or a
g|ven set of c|rcumstances. 1he ablllLy Lo prepare accounLlng reporLs LhaL apply Lhe
approprlaLe accounLlng concepLs and sLandards and properly accounL for Lhe underlylng
buslness evenLs or clrcumsLance. 1hls ouLcome ls focused on flnanclal accounLlng and
Lax accounLlng, Lhough ldenLlfylng and uslng approprlaLe Lechnlques ls also lmporLanL
for managerlal accounLlng.
2. Lva|uate an account|ng system for contro| strengths and weaknesses. 1he ablllLy Lo
evaluaLe accounLlng reporLs for falr presenLaLlon of flnanclal poslLlon and operaLlng
resulLs and Lo evaluaLe Lhe conLrol sLrengLhs and weaknesses of accounLlng sysLems
used Lo prepare Lhe flnanclal reporLs. 1hls ouLcome ls focused prlmarlly on accounLlng
lnformaLlon sysLems and audlLlng.
3. So|ve comp|ex (f|nanc|a| and manager|a|) account|ng prob|ems. 1he ablllLy Lo solve
complex accounLlng problems, lncludlng Lhe analysls and use of flnanclal accounLlng
lnformaLlon Lo supporL flnanclng and lnvesLlng declslons, Lhe use of managerlal
accounLlng lnformaLlon Lo supporL buslness declslons, Lhe use of Lax reporLlng
requlremenLs and consequences Lo supporL buslness declslons, and deLermlnlng how Lo
deslgn accounLlng lnformaLlon sysLems or lmprove exlsLlng sysLems.
4. 1ransform from a student to an account|ng profess|ona| (|.e. profess|ona||sm and
eth|ca| conduct). SLudenLs musL demonsLraLe awareness of and a wllllngness and ablllLy
Lo follow Lhe eLhlcal sLandards and norms for proper buslness behavlor requlred of
accounLlng professlonals.
1he Lable on Lhe followlng page summarlzes Lhe lall 2012 assessmenL resulLs for Lhe four
learnlng ouLcomes.

Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable
1) ueLermlne and apply
approprlaLe accounLlng
sLandard for Lhe
clrcumsLance
AC 313 66 3

16 (24%)

35 (53%) 15 (23%)
2) LvaluaLe accounLlng
sysLem for sLrengLhs and
weaknesses
AC 340
AC 445
71
73
3
3
21 (30%)
39 (54%)
31 (44%)
25 (34%)
19 (26%)
9 (12%)
3) Solve complex
accounLlng problems
AC 301
AC 313
70
66
3
3
43 (62%)
11 (16%)
19 (27%)
48 (73%)
8 (11%)
7 (11%)
4) 1ransform Lo a
member of Lhe
(knowledge and eLhlcs)
AC 300 94 4 39 (42%) 49 (52%) 6 (6%)
Learn|ng outcome 1 - ueLermlne and apply Lhe approprlaLe accounLlng sLandard(s) for a
buslness evenL or a glven seL of clrcumsLances - ls deslgned Lo reflecL Lhe sLudenLs' crlLlcal
Lhlnklng and analyLlcal reasonlng ablllLles as well as Lhelr knowledge of accounLlng sLandards.
Learnlng ouLcome 1 was evaluaLed uslng Lwo dlfferenL assessmenL Lools ln Lhe lall 2012
semesLer. 1wo secLlons of Lhe course were evaluaLed uslng exam problems provlded laLer ln
Lhe semesLer. Cne secLlon used a problem durlng a qulz early ln Lhe semesLer. ln LoLal, 77 of
Lhe sLudenLs performed aL an accepLable level or above, sllghLly below Lhe 80 LargeL. ln Lhe
Sprlng 2012 semesLer 83 performed aL an accepLable or above level however, comparlson Lo
Lhe prlor semesLer ls noL relevanL as Lwo of Lhe Lhree secLlons ln Lhe Sprlng 2012 semesLer used
a compleLely dlfferenL assessmenL Lool (l.e., a homework asslgnmenL).
Learn|ng outcome 2 - LvaluaLe accounLlng sysLem for [lnLernal conLrol] sLrengLhs and
weaknesses - ls deslgned Lo reflecL Lhe sLudenLs' crlLlcal Lhlnklng and analyLlcal reasonlng
ablllLles as well as Lhelr knowledge of lnLernal conLrols for accounLlng and reporLlng sysLems.
1hls knowledge ls lmporLanL for sysLem deslgn as well as for lnLernal and exLernal audlLlng
servlces.
ln AC 340, AccounLlng lnformaLlon SysLems, a new lnsLrucLor LaughL all Lhree secLlons of Lhe
course. 1he lnsLrucLor was Lold abouL Lhe learnlng goals and assessmenL requlremenLs, buL Lhe
resulLs of prevlous assessmenLs and Lhe Sprlng 2012 assessmenL reporL, whlle avallable for
revlew, were noL speclflcally dlscussed wlLh Lhe lnsLrucLor. 1he lnsLrucLor was Lold she could
prepare a new asslgnmenL for assessmenL, as a dlfferenL conLrol case has been used each
semesLer for assessmenL ln Lhls class.
SLudenLs were glven conLrol assessmenL asslgnmenLs LhroughouL Lhe semesLer. Cne of Lhe laLer
asslgnmenLs was selecLed for assessmenL. 1he asslgnmenL glven was afLer a class dlscusslon on
conLrols and was Lo be compleLed lndlvldually by Lhe sLudenLs ouLslde of class. 1he dlrecLlons ln

Lhe asslgnmenL gave Lhe sLudenLs a mlnlmum number of conLrols Lo dlscuss (6) from Lhe
dlscusslon or case submlLLed wlLh Lhe asslgnmenL. 1hls dlffered from Lhe Sprlng 2012
lnsLrumenL, whlch dld noL speclfy Lhe number of conLrol weaknesses Lo be dlscussed.
1he proporLlon of sLudenLs wlLh performance raLed below accepLable was 27. 1he LargeL of
80 of sLudenLs aL accepLable level or above was noL achleved, buL Lhe performance was a
slgnlflcanL lmprovemenL over Sprlng 2012 when 46 of sLudenLs were below accepLable.
ln AC 443, rlnclples of AudlLlng, sLudenLs were assessed uslng an lndlvldual pro[ecL. 1he
sLudenLs used AudlLlng Alchemy Company" maLerlals prepared by rlcewaLerhouseCoopers Lo
learn abouL Lhe company, Lhe lnLernal conLrol sysLem ln place ln operaLlons, walk-Lhrough
maLerlals Lo help assess Lhe lnLernal conLrol sysLem. 1here were also vldeos of lnLervlews wlLh
employees and of Lhe machlne and how lL was operaLed, and a presenLaLlon on CAvla8
(CompleLeness, Accuracy, valldlLy, and 8esLrlcLed Access) (lnLernal conLrol requlremenLs).
erformance was above Lhe goal wlLh 88 of sLudenLs performlng aL an accepLable level or
beLLer, buL Lhls was a decrease from Sprlng 2012, when all buL Lwo sLudenLs ouL of 77 (97)
performed aL an accepLable level or above, and 77 were above accepLable.
Learn|ng outcome 3 - Solvlng complex accounLlng problems - ls deslgned Lo assess sLudenLs'
Lechnlcal knowledge of accounLlng and problem solvlng ablllLy. ln AC 301 Lhe assessmenL ls
conducLed uslng a dlfferenL mlnl-case each semesLer. ln lall 2012, Lhe mlnl-case lnvolved
preparlng a cash budgeL and ldenLlfylng Lwo slgnlflcanL operaLlng problems revealed by Lhe
budgeL. ln AC 313 sLudenLs were glven a comprehenslve exam problem requlrlng sLudenLs Lo
creaLe a penslon worksheeL and demonsLraLe Lhelr undersLandlng of LhaL worksheeL by
applylng Lhe resulLs Lo flnanclal reporLlng.
ln Lhe cosL managemenL sysLems course (AC 301), 89 of sLudenLs performed aL an accepLable
level or above, wlLh 62 above accepLable, exceedlng Lhe 80 LargeL. 1he proporLlon of
sLudenLs performlng aL an accepLable level or above was almosL ldenLlcal Lo Sprlng 2012 when
88 of sLudenLs were accepLable or above. Powever, Lhe proporLlon of sLudenLs achlevlng
above accepLable levels of performance lncreased from 33 ln Sprlng 2012 Lo 62 ln lall 2012.
ln AC 313 (llnanclal 8eporLlng ll) 89 of sLudenLs performed aL an accepLable level or above,
exceedlng Lhe LargeL of 80. 1hls ls Lhe same percenLage performlng aL accepLable or above as
ln Sprlng 2012. SlxLeen percenL of Lhe sLudenLs were raLed above accepLable, down 7 from
Sprlng 2012 performance of 23.
Learn|ng outcome 4: 1ransform Lo a member of Lhe accounLlng professlon (knowledge and
eLhlcs) - ls deslgned Lo ensure LhaL sLudenLs are aware of Lhe lmpllcaLlons demands and
expecLaLlons assoclaLed wlLh enLerlng Lhe accounLlng professlon. 1hls ouLcome assesses
sLudenLs' awareness and undersLandlng of expecLaLlons and demands ln flve areas crlLlcal Lo
success as an accounLlng professlonal: (1) LLhlcal conducL, lncludlng awareness of Lhe codes of
eLhlcs assoclaLed wlLh accounLlng professlonal organlzaLlons, (2) professlonal demeanor and
dress/appearance, (3) professlonal communlcaLlon, (4) belng responslble, Llme managemenL
and Leam work, lncludlng meeLlng deadllnes, and (3) compeLence, meeLlng educaLlonal
sLandards, Lechnlcally knowledgeable, exerclslng due care, and provldlng full dlsclosure.
uurlng Lhe Sprlng 2012 semesLer Lhe assessmenL asslgnmenL was changed from an essay on Lhe

eLhlcal responslblllLles of accounLanLs worLh x of 1 of Lhe course grade Lo a comprehenslve
pro[ecL (fraud case) coverlng a wrlLlng asslgnmenL, developlng an ouLllne, preparlng a
powerpolnL presenLaLlon, oral presenLaLlon, and evaluaLlon of Lhe Leam. 1he fraud case was
10 of Lhe sLudenLs' grade. Lach sLudenL was requlred Lo research an asslgned company whose
managemenL had commlLLed fraud and wrlLe an essay on Lhe fraud lncludlng whaL accounLlng
prlnclples were vlolaLed, whaL Lhe proper accounLlng LreaLmenL should have been, who were
Lhe key players, and whaL Lhe consequences were of Lhe accounLlng LreaLmenL for Lhe key
players. 1he sLudenLs Lhen developed an ouLllne for Lhelr oral presenLaLlon and creaLed a
powerpolnL sllde presenLaLlon. AddlLlonally, each sLudenL ln Lhe on-campus secLlons was
requlred Lo glve a 3-10 mlnuLe oral presenLaLlon. LasLly, sLudenLs evaluaLed Lhelr group's
performance.
ln lall 2012 only slx of 92 sLudenLs were below accepLable, 49 sLudenLs performed aL an
accepLable level, and 39 sLudenLs performed above expecLaLlons. Cverall, 93 performed aL an
accepLable level or above. AlLhoughL Lhere was a gradlng rubrlc, Lhe dlsLlncLlon among Lhe
Lhree caLegorles ls clearly sub[ecL Lo Lhe faculLy member's lnLerpreLaLlon of Lhe crlLerla for
meeLs, exceeds or ls below expecLaLlons. 1he resulLs were vlrLually ldenLlcal Lo Lhose reporLed
ln Sprlng 2012, Lhe flrsL semesLer Lhe expanded asslgnmenL was used Lo assess learnlng
ouLcome 4.
Learn|ng outcome 1: 1wo class secLlons ln lall 2011, one class secLlon ln Sprlng 2012, and Lwo
class secLlons ln lall 2012 used embedded exam quesLlons for assessmenL. 1he remalnlng class
secLlons ln lall 2011 and Lwo class secLlons ln Sprlng 2012 used a flnanclal accounLlng research
asslgnmenL from Lhe LexLbook. 1he asslgnmenL was compleLed ouLslde Lhe class for
assessmenL. 1hls asslgnmenL had been used ln all secLlons prlor Lo lall 2011. As Lhe LexLbook
answers were easlly avallable from Lhe lnLerneL, Lhe coordlnaLor for Lhe class changed Lhe
assessmenL Lool Lo be embedded exam quesLlons. 1he ad[uncL professor chose Lo conLlnue
uslng Lhe prevlous assessmenL lnsLrumenL. 1he lall 2012 Lhlrd class secLlon used an ln-class qulz
solely devoLed Lo Lhe assessmenL problem mlsundersLandlng LhaL lL was Lo be used wlLh Lhe
exam coverlng boLh Learnlng CuLcomes 1 and 3 for AC 313. 1he closed-book qulz assessmenL
Lool was somewhaL slmllar Lo Lhe lease exam problems glven on Lhe exam.
1he prlmary dlfferences lncluded:
1. 1he qulz LesLed Lhe consequences of uslng boLh a guaranLeed and unguaranLeed
resldual value raLher Lhan Lhe bargaln purchase opLlon.
2. 1he qulz LesLed wheLher Lhe lessee should use lLs lncremenLal borrowlng raLe or Lhe
lessor's raLe lmpllclL ln Lhe lease.
3. 1he qulz LesLed boLh Lhe lessor and lessee's calculaLlons and [ournal enLrles uslng a
slngle problem.
4. 1he qulz requlred compleLlon of Lwo years of a lease amorLlzaLlon schedule raLher Lhan
flve-years ln Lhe lnLeresL of conservlng qulz Llme.
3. 1he qulz LesLed calculaLlon of parLlal year's lnLeresL and Lhe [ournal enLry effecLs

6. SLudenLs were glven 33 mlnuLes Lo Lake Lhe qulz compared Lo Lhe exam assessmenL Lool
whlch lncluded boLh lease problems and a penslon worksheeL problem and was
admlnlsLered over 73 mlnuLes.
1he proporLlon of sLudenLs achlevlng above accepLable, accepLable, and below accepLable
performance are summarlzed ln Lhe Lable below.
erformance level AssessmenL lall 2011 Sprlng 2012 lall 2012
Above AccepLable PW / Culz
Lxam
Cverall
(13) 63
(13) 28
(28) 39
(30) 32
(12) 40
(42) 48
(1) 6
(13) 31
(42) 24
AccepLable PW / Culz
Lxam
Cverall
(7) 29
(19) 40
(26) 37
(24) 42
(8) 27
(32) 37
(14) 78
(21) 44
(32) 33
8elow accepLable PW / Culz
Lxam
Cverall
(2) 8
(13) 32
(17) 24
(3) 6
(10) 33
(13) 13
(3) 16
(12) 23
(13) 23
lor sLudenLs assessed uslng embedded exam quesLlons, lmprovemenL over Lhe prlor semesLers
was exhlblLed wlLh 73 of Lhe sLudenLs performlng aL an accepLable or above accepLable level
compared Lo 67 and 66 for Lhe Sprlng 2012 and lall 2011 semesLers, respecLlvely. 1he
lmproved performance may be aLLrlbuLable Lo ellmlnaLlng Lhe requlremenL of Lwo full years of
accounLlng enLrles as well as reverslng enLrles. 1he excluslon of Lhese enLrles permlLLed more
Llme for Lhe sLudenLs Lo provlde Lhelr responses. Lxam problems requlred Lhe sLudenLs Lo
descrlbe Lhe accounLlng crlLerla for caplLallzlng a lease and Lo analyze and apply Lhe approprlaLe
accounLlng LreaLmenL for Lwo dlfferenL accounLlng LransacLlons. lor Lhe flrsL LransacLlon, Lhe
sLudenLs were requlred Lo deLermlne Lhe naLure of Lhe lease Lo Lhe lessee and explaln why,
prepare a compleLe amorLlzaLlon schedule, and Lhen provlde one full year of [ournal enLrles.
1he second LransacLlon requlred Lhe sLudenL Lo analyze Lhe naLure of Lhe lessor LransacLlon,
lncludlng deLermlnaLlon lf Lhe lease was a dlrecL-flnanclng lease or sales-Lype lease and provlde
Lhe approprlaLe [ournal enLrles for Lhe lnlLlal perlod.
1he class secLlon assessed uslng a qulz had 84 of sLudenLs performlng aL an accepLable level
or beLLer. 1hls exceeds Lhe performance of sLudenLs on Lhe embedded exam quesLlons buL ls
lower Lhan Lhe performance on Lhe unLlmed ouL-of-class asslgnmenLs used ln Sprlng 2012 and
lall 2011. lf Lhe qulz problem had been parL of an lnLerlm examlnaLlon wlLh aL leasL Lwo oLher
problems, more sLudenLs mlghL have falled Lo achleve an accepLable level score. 1he facL LhaL
Lhe qulz, whlle mandaLory, was for exLra credlL may explaln why only one sLudenL achleved an
above accepLable performance. 1op sLudenLs may noL have been as moLlvaLed Lo perform on
Lhe qulz as Lhey would be on an exam.
lor Lhe ouL-of-class asslgnmenLs, sLudenLs performed aL an accepLable or above accepLable
level 94 and 92 for Lhe Sprlng 2012 and lall 2011 semesLers, respecLlvely. 1he hlgh levels
may be aLLrlbuLed Lo Lhe easy access Lo LexLbook answers, sLudenLs poLenLlally could share
Lhelr work, and Lhe sLudenLs were noL sub[ecLed Lo a Llme llmlL. Pence, Lhe declslon was made
Lo change Lo a more demandlng asslgnmenL.

Learn|ng outcome 2:
ln Sprlng 2012, AC 340 sLudenLs were assessed on a mlnl-case glven as parL of an ln-class exam,
and 46 performed below accepLable. 1he Sprlng 2012 assessmenL case lnvolved a
compuLerlzed sysLem, whlle Lhe prevlous assessmenLs lnvolved a slmple manual sysLem.
Analyzlng Lhe performance of Sprlng 2012 sLudenLs who had below accepLable performance a
common error was found. Many sLudenLs dld noL correcLly ldenLlfy Lhe [ob of Lhe person ln Lhe
case and how segregaLlon of duLles applles Lo LhaL parLlcular [ob, appllcaLlons developer.
lnsLead, mosL of Lhe sLudenLs who fell below Lhe accepLable performance level gave a generlc
or lncorrecL sLaLemenL abouL segregaLlon of duLles and dld noL Lake lnLo conslderaLlon Lhe [ob
of Lhe person ln Lhe case. 1he Sprlng 2012 resulLs were noL speclflcally revlewed wlLh Lhe new
lnsLrucLor, and Lhe lall 2012 lnsLrucLor assessed conLrol sLrengLhs and weaknesses relaLed Lo
dlsasLer recovery generally, noL fraud prevenLlon ln a sample compuLerlzed sysLem descrlbed ln
a case as ln Sprlng 2012. 1hus we cannoL use Lhe lall 2012 resulLs Lo assess wheLher Lhe
parLlcular weakness revealed ln Sprlng 2012 (lack of famlllarlLy wlLh segregaLlon of duLles wlLhln
a compuLerlzed sysLem envlronmenL, was addressed wlLh changes ln Lhe lall lnsLrucLlon.
1he Lable below shows lall 2012 AC 340 assessmenL resulLs across course secLlons. Across Lhe
Lhree classes assessed lL was surprlslng Lo see 40 below accepLable ln Lhe second class of Lhe
day wlLh Lhe oLher Lwo classes posLlng only 20 below accepLable. Above accepLable
performance was hlghesL ln Lhe evenlng class. lL ls posslble LhaL varlaLlon ln Lhe dlscusslon
when lnLroduclng Lhe asslgnmenL may accounL for some of Lhe dlfference ln ouLcomes across
secLlons. Powever, Lhe lnsLrucLor does noL belleve Lhere was a ma[or dlfference ln Lhe
dlscusslon of Lhe case asslgnmenL.
IALL 2012
Courses
where
measured
Number
of
students
measured
Number of
students
Above
acceptab|e
Number
of
students
acceptab|e
Number of
students
be|ow
acceptab|e
IALL 2012 AC 340-01 30 8
27
16
33
6
20
IALL 2012 AC340-70 23 3
20
10
40
10
40
IALL 2012 AC340-71 16 8
30
3
31
3
19

Learn|ng Cb[ect|ve 2-
Lva|uated account|ng
system for |nterna|
contro| strengths and
weaknesses
AC340
3 sect|ons
measured
71 21
30
31
43
19
27
Many of Lhe problems wlLh submlsslons may reflecL lack of clarlLy ln Lhe lnsLrucLlons, especlally
because Lhls asslgnmenL had a dlfferenL formaL Lhan Lhe conLrol analysls problems prevlously
asslgned. Clearer wrlLLen lnsLrucLlons and asslgnlng oLher problems followlng Lhe same formaL
prlor Lo Lhe problem used ln assessmenL should ellmlnaLe problems due Lo sLudenL confuslon
abouL Lhe requlremenLs and lL should reduce Lhe number of below accepLable submlsslons.

AlLhough performance on Lhe AudlLlng Alchemy asslgnmenL was above goal, Lhls was Lhe
second semesLer of decllnlng performance. Some of Lhe lncrease ln below accepLable
performance may be due Lo random varlaLlon because we are deallng wlLh a small number of
sLudenLs. Powever, Lhe proporLlon of sLudenLs wlLh above accepLable performance ls also
down slgnlflcanLly. PealLh lssues of Lhe lnsLrucLor for Lwo of Lhe course secLlons may have
reduced Llme spenL preparlng sLudenLs for Lhls asslgnmenL and LhaL may have affecLed sLudenL
performance.
Learn|ng outcome 3: ln assesslng Lhe ablllLy Lo solve complex accounLlng problems ln CosL
ManagemenL SysLems, we have sLudenLs solve a mlnl-case and crlLlcally analyze or explaln Lhe
slgnlflcance of Lhelr resulLs. erformance lmproved each semesLer, wlLh Lhe proporLlon of
sLudenLs below accepLable now remalnlng sLeady aL 11-12 whlle Lhe proporLlon of sLudenLs
wlLh above accepLable performance reached 62. 1hls semesLer an lnLroducLlon Lo Lhe
asslgnmenLs was prepared and Lhe gradlng rubrlcs were avallable before sLudenLs compleLed
Lhe asslgnmenLs. SLudenLs were encouraged Lo look aL Lhem and added clarlLy abouL
expecLaLlons may accounL for Lhe lncrease ln above accepLable performance, parLlcularly
because Lhe second mlnl-case sLudenLs compleLe ls used for assessmenL. SLudenLs dld very well
on Lhe analyLlcal aspecLs of Lhe case. 1he hlgh level of above accepLable performance may ln
parL be aLLrlbuLable Lo Lhe mlnl-case used for assessmenL belng a budgeLlng case, and sLudenLs
compleLe an exLenslve budgeLlng pro[ecL for assessmenL ln lnLroducLory Managerlal AccounLlng
(AC 212). SLudenL performance was pooresL ln ldenLlfylng operaLlng problems.
lor AC 313 (llnanclal 8eporLlng ll), 89 of Lhe sLudenLs scored aL an accepLable or above
accepLable level. 1hls maLches Lhe Sprlng 2012 performance of 89 however Lhe above
accepLable performance dropped ln Lhe lall 2012 semesLer Lo 16 from 23 ln Lhe Sprlng 2012
semesLer. no obvlous explanaLlon exlsLs for Lhe decrease. An lnLeresLlng noLe ls Lhere were 21
fewer sLudenLs enrolled ln AC313 ln Lhe lall 2012 semesLer.
1wo secLlons of AC 313 requlred sLudenLs Lo prepare a penslon worksheeL and demonsLraLe
Lhelr undersLandlng of LhaL worksheeL by applylng Lhe resulLs Lo flnanclal reporLlng. 1he
lnsLrumenL was LesLed along wlLh Learnlng CuLcome 1 ln a 73 mlnuLe exam. Cverall, 67 of Lhe
sLudenLs achleved an accepLable or above accepLable level. SLudenLs revlewed several penslon
worksheeL problems, had penslon worksheeL Wlleylus (onllne homework Lool) problems, and
prepared an Lxcel penslon worksheeL problem LhaL was submlLLed for 3 Lowards Lhe
sLudenL's grade. 1he submlLLed excel asslgnmenL was very slmllar Lo Lhe exam problem.
Powever, one explanaLlon for Lhe decrease compared Lo Sprlng 2013 may be due Lo class Llme
dedlcaLed Lo Lhe penslons Loplc was reduced from Lhree classes Lo Lwo classes. 1he decreased
class coverage was caused from lnclemenL weaLher causlng cancelled classes and more class
Llme dedlcaLed Lo revenue recognlLlon.
Cne secLlon of AC313 used a slmllar penslon problem as Lhe assessmenL Lool and was
admlnlsLered ln a 20 mlnuLe closed-book qulz. Some dlfferences beLween Lhe qulz and Lhe
exam problem lncluded:
1. 1he qulz used an employmenL and reLlremenL Lable famlllar Lo Lhe lnsLrucLor and LaughL
by Lhe lnsLrucLor ln Lhe classroom whlle Lhe exam formaL used Lhe penslon worksheeL
demonsLraLed ln Lhe course LexLbook.

2. 1he qulz requlred balance sheeL presenLaLlon.
3. 1he qulz used a dlfferenL gradlng scale.
lor Lhe secLlon of AC 313 LhaL admlnlsLered Lhe qulz, 84 of Lhe sLudenLs achleved an
accepLable (78) or above accepLable (3) level.
Learn|ng outcome 4: 1ransform Lo a member of Lhe accounLlng professlon (knowledge and
eLhlcs).1hls learnlng ouLcome ls deslgned Lo ensure LhaL sLudenLs are aware of Lhe lmpllcaLlons,
demands, and expecLaLlons assoclaLed wlLh enLerlng Lhe accounLlng professlon.
ln Lhe Sprlng 2012, a new lnsLrumenL was developed LhaL lncluded evaluaLlon of Lhe lndlvldual
sLudenLs' sofL skllls (wrlLLen, oral, presenLaLlon Lools, Leamwork, leadershlp, Llme
managemenL), as well as research and Lechnlcal skllls (lncludlng eLhlcs and accounLlng lssues).
1hls lnsLrumenL was conLlnued ln evaluaLlng Lhe lall 2012 sLudenLs. SLudenL performance by
class secLlon ls shown ln Lhe Lable below:

Course(s) Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable
Fall 2012 AC 300-01 18 12 (67%) 5 (28%) 1 (5%)
Fall 2012 AC 300-02 24 13 (54%) 8 (33%) 3 (13%)
Fall 2012 online
AC 300-CO1 24 7 (29%) 15 (63%) 2 (8%)
Fall 2012 AC 300-70 28 7 (25%) 21 (75%) 0 (0%)
4) 1ransform Lo a
member of Lhe
(knowledge and
eLhlcs)
AC 300 94 4 39 (41%) 49 (52%) 6 (7%)
AC 300-CC1 and AC 300-70 secLlons had a hlgher percenLage of sLudenLs ln Lhe Above
AccepLable" caLegory. 1hls ls due Lo Lhe llkellhood LhaL more maLure sLudenLs were ln Lhe
evenlng and onllne secLlons. MaLure sLudenLs Lend possess beLLer research and presenLaLlon
skllls.
Areas where sLudenLs need lmprovemenL lnclude Lhelr wrlLlng skllls (e.g., grammar errors, poor
LranslLlons, noL plaglarlzlng). As expecLed, mosL sLudenLs were uncomforLable speaklng ln fronL
of Lhe class, and Lended Lo read from Lhelr noLes raLher Lhan speaklng Lo Lhe class. ConLlnued
pracLlce ln Lhelr coursework wlll help allevlaLe Lhls uneaslness and beLLer prepare Lhem for Lhe
lndusLry. Cverall, Lhe sLudenLs worked well ln Lhelr groups and demonsLraLed an awareness of
eLhlcal and accounLlng lssues. All of Lhe lnsLrucLors were pleased wlLh Lhe level of awareness of
professlonal responslblllLles demonsLraLed by our AC 300 sLudenLs.
Learnlng Cb[ecLlve 1 - Applylng Lhe approprlaLe accounLlng sLandard for Lhe clrcumsLance.
Act|on |tems from pr|or semester (C|os|ng the |oop):
1. SLudenLs were surveyed on some of Lhe more challenglng Loplcs ln Lhe course. As noLed

ln lLem 3 below, Loplc coverage ln has been rebalanced ln Lhe AC 300/312/313 course
sequence Lo allow more Llme Lo be devoLed Lo Lhe more complex Loplcs.
2. 1he lease LransacLlon problems were revlsed Lo lnclude only 1 year of enLrles and
exclude reverslng enLrles.
3. 8e-allgn Lhe AC300/AC312/AC313 maLerlal - ln pasL years, AC300 covered Lhe flrsL flve
chapLers of Lhe LexLbook, AC312 covered nlne chapLers, and AC 313 covered 10
chapLers. 1he flnanclal reporLlng maLerlal has been re-balanced permlLlng more Llme ln
AC313 Lo revlew complex accounLlng lssues. (noLe: uue Lo Lhe LranslLlon Llme, AC 313
wlll noL be lmpacLed by Lhe re-balanclng unLll Lhe lall 2013 semesLer.)
Act|on Items St||| |n rocess
1. uevelop a pracLlce seL of exerclses for Lhe sLudenLs. CurrenLly, sLudenLs can easlly access
Lhe answers Lo Lhe LexLbook problems Lhrough Lhe lnLerneL. An alLernaLlve ls uslng
Wlleylus. Powever, Wlleylus does noL relnforce Lhe learnlng (reLenLlon) by wrlLlng
down Lhe [ournal enLrles, worksheeLs, schedules eLc. lf a seL of exerclses ls developed
slmllar Lo Lhe penslon worksheeL exerclse, Lhe sLudenLs may reLaln more by acLually
wrlLlng ouL Lhe requlremenLs. ln Wlleylus Lhere are drop-down boxes" from whlch Lhe
sLudenLs selecL accounLs. 1he sLudenLs need more pracLlce wrlLlng Lhe enLrles down.
1hls acLlon lLem ls exLremely Llme consumlng and should be asslgned Lo Lhe lndlvldual who
plans Lo be Lhe prlmary responslble person for AC313 courses. Agaln, unlformlLy of course
coverage and conslsLency wlLh followlng Lhe layouL and presenLaLlon of Lhe book wlll ensure
our sLudenLs are recelvlng sLable, rellable and dependable conLenL coverage whlch ln Lurns alds
ln our evaluaLlon of Lhe learnlng ouLcomes.
Learnlng ob[ecLlve 2 - LvaluaLe accounLlng sysLem for sLrengLhs and weaknesses.
AcLlon lLems:
lor AC 340 AccounLlng lnformaLlon SysLems
1. AdopL a case for assessmenL more slmllar Lo Lhe case used ln Sprlng 2012 (analyzlng
conLrol weaknesses ln a compuLerlzed sysLem. uLlllze dlrecLlons slmllar ln word and
formaL Lo Lhose used ln Sprlng 2012. 8emove any dlrecLlve llsLlng an acLual number of
conLrol weaknesses LhaL should be found.
2. lncorporaLe acLlon lLems from Lhe Sprlng 2012 ACL reporL.
2.1. lncorporaLe more pracLlce problems lnvolvlng evaluaLlon of compuLerlzed
accounLlng lnformaLlon sysLems lnLo Lhe AlS course. locus more on Lhe duLles of
dlfferenL Lypes of employees worklng wlLh compuLerlzed accounLlng lnformaLlon
sysLems, and how segregaLlon of duLles applles Lo compuLerlzed sysLems.
2.2. LvaluaLe Lhe AlS assessmenL problem for level of complexlLy prlor Lo admlnlsLerlng
Lhe problem. 8e conslsLenL wlLh Lhe assessmenL. LlLher always use a Llmed LesL
seLLlng, or always have lL compleLed as an lndlvldual asslgnmenL ouLslde class wlLh
access Lo references.
3. Clarlfy dlrecLlons wlLhln Lhe lnsLrumenL used and rely less on verbal dlrecLlons.

1. Pave examples presenLed elLher wlLhln Lhe asslgnmenL or prlor Lo asslgnlng Lhe
lnsLrumenL uLlllzlng Lhe proper response formaL and conLenL.
lor AC 443 AudlLlng
1.1. 8evlew preparaLlon for sLudenLs recelve for Lhe AudlLlng Alchemy Case wlLh Lhe prlor
lnsLrucLor and Lhe Lwo currenL lnsLrucLors. LsLabllsh besL currenL pracLlce.
Learnlng ob[ecLlve 3 - Solve complex accounLlng problems.
AcLlon lLems
lor AC 301 CosL ManagemenL SysLems:
1. lncrease emphasls on problem ldenLlflcaLlon, and on uslng lnformaLlon prepared Lo
ldenLlfy and solve problems.
2. rovlde examples of a good analysls and bad analysls on pracLlce asslgnmenLs clarlfy
expecLaLlons for sLudenLs.
lor AC 313 llnanclal 8eporLlng ll: See Learn|ng ob[ect|ve 1
Learnlng ob[ecLlve 4: 1ransform Lo a member of Lhe accounLlng professlon (knowledge and
eLhlcs).
All of Lhe lnsLrucLors were pleased wlLh Lhe level of awareness of professlonal responslblllLles
demonsLraLed by our AC 300 sLudenLs.
AcLlon lLems:
1. lurLher lnLegraLe opporLunlLles for oral presenLaLlons wlLhln Lhe accounLlng currlculum.
2. ConLlnue Lo lnLegraLe eLhlcs cases ln advanced accounLlng courses
3. ConLlnue seeklng feedback from flrms lnLervlewlng our sLudenLs on Lhe level of
professlonallsm Lhey demonsLraLe ln Lerms of communlcaLlon and demeanor. Ad[usL
Lhe class Lo address any weaknesses ldenLlfled.
rogram-w|de act|on |tems:
1. llnd ways Lo lmprove problem solvlng and reLenLlon of Lechnlcal knowledge covered
LhroughouL our courses. (All faculLy).
2. lormallze a process LhaL ensures LhaL Lhe ACL measures are conslsLenLly admlnlsLered
regardless of who ls Leachlng Lhe course. ldenLlfy roles of Lhe deparLmenL chalr, lead
coordlnaLor, and faculLy. 1hls remalns an area sub[ecL Lo mlscommunlcaLlon and lack of
coordlnaLlon. 1he problem was parLlcularly acuLe ln lall 2012 when we had Lhree new
full Llme faculLy members and a number of full Llme and parL Llme faculLy members
changlng Leachlng asslgnmenLs. (L. Crasso, and lead coordlnaLors for each course).
3. AssessmenLs musL be glven hlgher prlorlLy by all faculLy. 1he assessmenLs musL be
compleLed by esLabllshed deadllnes. All lnsLrucLors Leach a course secLlon lnvolved ln
assessmenL are requlred Lo admlnlsLer Lhe assessmenL asslgnmenL and compleLe Lhe
assessmenL LemplaLe wlLh LhoughLful conslderaLlon glven Lo flndlngs, analysls, and
lmprovemenL acLlons. lull Llme faculLy noL Leachlng course secLlons lnvolved ln
assessmenL should be responslble for revlewlng drafL submlsslons. lnpuL from parL-Llme

faculLy noL Leachlng course secLlons lnvolved ln assessmenL wlll be welcome buL noL
requlred. Low prlorlLy for assessmenL reporLs and Lhelr laLe submlsslon ls a prlmary
cause of Lhe fallure Lo coordlnaLe across secLlons and fully lmplemenL recommended
acLlon lLems. (L.Crasso & l1 laculLy, & all 1 laculLy Leachlng course secLlons lnvolved ln
assessmenL).
4. Make recelpL and revlew of pasL ACL reporLs a parL of Lhe process for any faculLy
member recelvlng a Leachlng asslgnmenL ln a course lnvolved ln program assessmenL.
(L.Crasso and lead coordlnaLors for each course).
3. All assessmenL lnsLrumenLs and rubrlcs belng used durlng a semesLer should be
avallable aL Lhe beglnnlng of Lhe semesLer and should be lncluded wlLh Lhe ACL reporLs
and masLer syllabus ln a package Lo all lnsLrucLors asslgned Lo Leach a course lnvolved ln
assessmenL. lf assessmenL asslgnmenLs or rubrlcs are under revlslon, and explanaLlon of
Lhe naLure of Lhe revlslons and a LargeL compleLlon daLe (no laLer Lhan one monLh lnLo
Lhe semesLer) should be lncluded ln Lhe package dlsLrlbuLed Lo lnsLrucLors. (L. Crasso &
lead coordlnaLors for each course).
6. Where sLudenL performance ls below goal, ensure LhaL sLudenLs have more pracLlce ln
Lhe compeLencles belng assessed uslng asslgnmenLs slmllar ln form Lhose used ln Lhe
assessmenLs. (All lnsLrucLors ln Lhe relevanL courses).
7. uocumenL graded wrlLlng asslgnmenLs LhroughouL Lhe accounLlng currlculum. Assess
Lhe adequacy of Lhe level of pracLlce avallable Lo sLudenLs ln preparaLlon for wrlLLen
communlcaLlon demands of a career ln accounLlng. (All faculLy provlde lnpuL, M. uuranL
Lo summarlze resulLs).
8. uocumenL graded Lxcel SpreadsheeL asslgnmenLs across Lhe accounLlng currlculum.
Assess Lhe adequacy of Lhe level of pracLlce avallable Lo sLudenLs ln preparaLlon for
wrlLLen communlcaLlon demands of a career ln accounLlng. (All faculLy provlde lnpuL, M.
uuranL Lo summarlze resulLs).
9. lurLher lnLegraLe opporLunlLles for oral presenLaLlons wlLhln Lhe accounLlng currlculum.
(All faculLy provlde lnpuL, M. uuranL Lo summarlze resulLs).

Learn|ng outcome 1) Determ|ne and app|y appropr|ate account|ng standard for a bus|ness
event or c|rcumstance.

AC 313-01 & 70

Rubric:
Lessee Accounting
The following facts pertain to a non-cancelable lease agreement between Jameson Leasing
Company and Axel Company, a lessee.
Lease term 5 years

Economic life of Leased Equipment under Capital
Leases
10 years

The collectibility of the lease payments is reasonably predictable, and there are no important
uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes
responsibility for all executory costs.
PV of $1 = 0.56743

d) Prepare the journal entries on the lessee's books to reflect the signing of the lease
agreement and to record the payments and expenses related to this lease for the years
2010 and 2011. Axels annual accounting period ends on December 31. Reversing entries
are used by Axel Company.

Rubric:
a) 1 point
b) 1 point

Lessor Accounting
On January 1, 2011, Greenspan Corporation, a machinery dealer, leased to Geitner Inc. a
machine that cost $127,000 to manufacture. The lease agreement covers the 6-year useful life of
the machinery and requires 6 equal annual payments of $39,200 payable each January 1,
beginning January 1, 2011. An interest rate of 11% is implicit in the lease agreement.
Collectibility of the rentals is reasonably assured, and there are no important uncertainties
concerning costs. Prepare Greenspans January 1, 2011, journal entries. Present value factor is
4.69590 for an annuity due and the present value factor for an ordinary annuity is 4.23054.
Rubric:
Scorlng
> 30 - Above accepLable
36 - 49 - AccepLable
< 33 - 8elow accepLable

AC 313-71
nelson LnLerprlses (lessee) leases a sporLs arena from Lhe Plll llnance CorporaLlon (lessor) on
!anuary 1, 2012 under Lhe followlng Lerms:

1. 1he noncancelable lease agreemenL has a Lerm of flve years, requlres flve equal
paymenLs of $4,640 due at the beg|nn|ng of each year sLarLlng !anuary 1, 2012 and
lncludes a guaranLeed resldual value of $1,030.
2. 1he lease agreemenL speclfles LhaL ownershlp of Lhe arena wlll be Lurned over Lo nelson
LnLerprlses aL Lhe end of Lhe lease Lerm and conLalns no bargaln purchase opLlon.
3. 1he falr markeL value of Lhe arena and, Lherefore, Lhe lmpllclL lnLeresL raLe (lnLernal raLe
of reLurn) of 9 ls known Lo Lhe lessee whose lncremenLal borrowlng raLe ls 10.
4. AL Lhe lncepLlon of Lhe lease agreemenL, Lhe arena has a falr markeL value of $20,336
and an esLlmaLed economlc llfe of slx years. 1he lessee depreclaLes slmllar asseLs
uslng Lhe sLralghL-llne meLhod.

kequ|red:

a. Descr|be |n comp|ete sentences why nelson LnLerprlses musL accounL for Lhls
agreemenL as a caplLal lease. ?our answer musL lnclude references Lo all 4 lessee
crlLerla along wlLh relevanL numerlcal supporL. 8ound Lo Lhe nearesL dollar for all
calculaLlons.
b. repare all lessee [ournal enLrles for 2012.
c. Assume Lhe lessor accounLs for Lhls agreemenL as a sa|es type |ease and LhaL Lhe arena
cosL Lhe lessor $16,000. repare all lessor [ournal enLrles for 2012.
d. resenL all lease relaLed accounLs found on Lhe lessor's balance sheeL aL Lhe end of 2013.
e. Assume Lhe $1,030 resldual value ls unguaranLeed. repare Lhe lnlLlal [ournal enLry for
Lhe lessee and lessor (l.e., a sales Lype lease) on !anuary 1, 2012 (l.e., before rece|pt of
flrsL paymenL).

Cpt|ona| Lease Amort|zat|on 1ab|e: Subsequent resent Va|ues
Annua| Cash Interest Lxpense] Change |n V 8a|ance of Lease
Date ayment Interest kevenue of Asset]L|ab|||ty Asset]L|ab|||ty

01/01/12
01/01/12
12/31/12
01/01/13
12/31/13
So|ut|on to ACL Lease u|z

a. 1hls LransacLlon musL be accounLed for as a caplLal lease because aL leasL one of
Lhe four crlLerla has been meL (olnLs = 2, 1, 3, 3).
1. 1he lease agreemenL speclfles LhaL LlLle Lo Lhe arena wlll be Lurned over Lo Lhe lessee aL
Lhe end of Lhe lease Lerm. 1hus, Lhls lease agreemenL Lransfers ownershlp of Lhe
properLy Lo Lhe lessee aL Lhe LermlnaLlon of Lhe lease (see #2).
2. 1he agreemenL doesn'L conLaln a bargaln purchase opLlon (see #2).

Slnce CrlLerlon 1 (an ln form" crlLerlon) ls meL, Lhe leased asseL ls depreclaLed over lLs
economlc llfe raLher Lhan amorLlzed over Lhe lease Lerm.
3. 1he 3-year lease Lerm equals or exceeds 73 of Lhe arena's 6-year economlc
llfe maklng lL an ln subsLance" caplLal lease. 1haL ls, 3/6 = 83.3 > 73
4. 8elow, Lhe presenL value of fuLure cash flows equals or exceeds 90 of Lhe arena's
falr value. 1hus, Lhe $20,336 presenL value ls 100 of Lhe properLy's falr value.

1|me||ne Ior Lessee:
b. _______
$-4,640 | 1 -3 b | $-1,030
|__________________________________________________________|
| |
0 l88 = 9 l88 = 10 3

Ca|cu|at|on of In|t|a| resent Va|ue:

Slnce Lhe lessee knows boLh Lhe properLy's lv and Lhe lessor's l88 of 9, lL musL record Lhe
lease asseL and lease llablllLy aL Lhe presenL value of lLs fuLure cash flows uslng an lnLeresL raLe
of 9. 1he calculaLlon below ls requlred:

vA
38
+ v
3L
= [8
4L
(vAll) + v
0
] + v
3L
= [$4,640 (3.24) + $4,640] + $1,030 (.63)

= $4,640 (3.24 + 1.0) + $1,030 (.63) = $4,640 (4.24) + $1,030 (.63)
= 19,673.60 + $682.30 or 520,3S6.10

Lessee Iourna| Lntr|es: (o|nts = 3, 2, 4, 4)

1/01/12 Leased AsseL (resenL value = lalr value) 20,336
Lease LlablllLy 20,336

Cash (Clven) 4,640

12/31/12 uepreclaLlon Lxpense [($20,336 - $1,030)/6)] 3,218
AccumulaLed uepreclaLlon 3,218

lnLeresL Lxpense [($20,336 - $4,640) x .10] 1,414

c. Lessor Iourna| Lntr|es: (o|nts = 3, 2.S, 1.S, 3)

1/01/1 2 Lease 8ecelvable (Arena lv) 20,336
Sales 8evenue (lv) 20,336

CosL of Coods Sold 16,000
lnvenLory 16,000

Cash 4,640
Lease 8ecelvable 4,640

12/31/12 Lease 8ecelvable 1,414
lnLeresL 8evenue [($20,336 - $4,640) .09] 1,414

d. resenL value aL 1/1/2011 $20,336
Less: Lease 8ecelpL 4,640
resenL value AfLer 1
sL
8ecelpL (1/1/2011) $13,716
Add: lnLeresL 8evenue ($13,716 x .09) 1,414 (rounded)
resenL value aL 12/31/2011 $17,130
Less: Lease 8ecelpL (1/1/2012) 4,640
resenL value AfLer 2
nd
8ecelpL (1/1/2012) $12,490
Add: lnLeresL 8evenue ($12,490 x .09) 1,124 (rounded)
resenL value aL 12/31/2012 $13,614

resentat|on of Lessor's 8a|ance Sheet (12]31]2): (o|nts = 8)
AsseLs:

Lease 8ecelvable [$20,336 - (2 x $4,640) + (1,414 + 1,124)] $13,614

Lease Amort|zat|on 1ab|e: Subsequent resent Va|ues

Annua| Cash Interest Lxpense] Change |n V 8a|ance of Lease
Date ayment Interest kevenue of Asset]L|ab|||ty Asset]L|ab|||ty
01/01/11 $20,336
01/01/11 $4,640 $(4,640) 13,716
12/31/11 1,414 1,414 17,130
01/01/12 $4,640 (4,640) 12,490
12/31/12 1,124 1,124 13,614

e. Lessee Iourna| Lntry: 3 o|nts

1/01/1 Leased AsseL ($4,640 x 4.24) 19,673.60
Lease LlablllLy 19,673.60

Lessor Iourna| Lntry: 7 o|nts

1/01/1 Lease 8ecelvable (lv) 20,336.00
CosL of Coods Sold ($16,000 - $682.30) 13,317.30
Sales 8evenue (lv)
($20,336 - $682.30 or $46,473 x 4.24) 19,673.30
Arena lnvenLory (Clven)
16,000.00

Grad|ng kubr|c by art (S0 1ota| o|nts):

art a. Lssay on Lease Cr|ter|a: 9 po|nts
art b. 2012 Lessee Iourna| Lntr|es (IL's): 13 po|nts
art c. 2012 Lessor IL's: 10 po|nts
art d. Lessor's 8a|ance Sheet resentat|on: 8 po|nts
art e. Lessee]Lessor IL's (unguaranteed res|dua| va|ue): 10 po|nts


Learn|ng outcome 2) Lva|uate account|ng systems for |nterna| contro| strengths and
weaknesses.
Instrument AC 340:
CASL 2: AlS A1 WC8k - CCnSuL1lnC WC8k lC8 CAs (30pLs)
8uslness and governmenL enLlLles have always been concerned abouL dlsasLer recovery or conLlnulLy
plannlng. Powever, Lhe evenLs of SepLember 11, 2001, and Purrlcane kaLrlna made everyone even more
aware of Lhe necesslLy of preparlng for dlsasLer. AudlLors can help. ConLlnulLy plannlng ls an lnLernal
conLrol devlsed Lo ensure LhaL operaLlons, lncludlng l1 funcLlons, can conLlnue ln Lhe evenL of a naLural
or man-made dlsasLer, lncludlng Lerrorlsm and acLs of naLure. l1-especlally lnLerneL Lechnologles-ls
vulnerable Lo man-made aLLacks, such as vlruses and worms. An onllne reLaller, for example, cannoL
afford Lo compromlse sysLem avallablllLy. 1he absence of a conLlnulLy plan ls a reporLable condlLlon
under SLaLemenL on AudlLlng SLandards no. 60, CommunlcaLlon of lnLernal ConLrol 8elaLed MaLLers
noLed ln an AudlL.
A CA can help a buslness Lo draw up a buslness conLlnulLy plan. As noLed ln a recenL arLlcle ln new
AccounLanL, some lorLune 300 companles wlll pay $40,000 or more for such a dlsasLer recovery
plannlng engagemenL. 1hese plans lnclude secLlons on backup and recovery procedures for all l1, offslLe
locaLlons for daLa sLorage, and lnformaLlon abouL hoL (fully equlpped for lmmedlaLe use) or cold (leased
faclllLles LhaL do noL lnclude hardware and sofLware) slLes avallable for use should currenL physlcal
faclllLles become lnaccesslble or damaged. 1he plans also lnclude conLacL lnformaLlon for Lhe
managemenL recovery Leam. Coples of Lhe plan, of course, musL be sLored off-slLe Lhemselves. ldeally,
each member of Lhe managemenL recovery Leam has aL leasL one copy aL Lhelr home or ln anoLher
easlly accesslble locaLlon off-slLe.
A dlsasLer recovery plan ls of no use lf lL ls noL LesLed regularly. Such LesLlng ls vlLal Lo learn where Lhere
may be weaknesses. As an example, durlng an early lnLerneL worm crlsls, many managers found LhaL
Lhey were acLually sLorlng lnformaLlon regardlng who Lo conLacL ln a sysLems emergency on Lhelr own
compuLers! naLurally, when Lhe compuLers wenL down, so dld Lhls vlLal lnformaLlon. lull-blown LesLlng
of a dlsasLer recovery plan ls expenslve and Llme consumlng. SomeLlmes lL ls dlfflculL for managers Lo
undersLand Lhe lmporLance of lL because Lhey can'L see a dlrecL llnk Lo enhanclng Lhelr lncome. 1he
audlLor may need Lo make Lhe case. unforLunaLely, Lhere are many, many examples avallable Lo use for
Lhls purpose.
What are some of the potent|a| |ssues d|scussed
|n th|s art|c|e? Ident|fy at |east 6 |ssues
Can they be e||m|nated? now?
If not can the threat be reduced? now?

ASSLSSMLN1
Above AccepLable (43-30pLs) llsLed 6 or more poLenLlal conLrol lssues wlLh explanaLlons wheLher
each counLermeasure can be reduced or ellmlnaLe and how LhaL can be accompllshed.
AccepLable (33-44pLs) llsLed 4-3 poLenLlal conLrol lssues had lndlvlduallzed explanaLlons wheLher
each (or a ma[orlLy of each) counLermeasure can be reduced or ellmlnaLed and how LhaL can be
accompllshed.
8elow AccepLable (<33pLs) llsLed fewer Lhan 4 conLrol lssues were llsLed and/or no more Lhan Lhree
conLrols had lndlvlduallzed explanaLlons wheLher each (or a ma[orlLy of each) counLermeasure can
be reduced or ellmlnaLed and how LhaL can be accompllshed.

Instrument: AC 44S Aud|t|ng A|chemy Interna| Contro| Assessment Case
ueveloped by rlceWaLerhouseCoopers
Assessment rubr|c AC 44S - ro[ect Assessment
(app||ed separate|y to weaknesses and recommended so|ut|ons)
Above accepLable: ldenLlfled flve or more ma[or conLrol weaknesses and flve or more
recommended soluLlons
AccepLable: ldenLlfled Lhree or four ma[or conLrol weaknesses and Lhree or four
8elow AccepLable: ldenLlfled Lwo or fewer conLrol weaknesses and Lwo or fewer

Learn|ng outcome 3) So|v|ng comp|ex account|ng prob|ems.
CRITICAL THINKING 2
CASH BUDGET
You are a staff accountant at Collegiate Seminars (CS) which is a nonprofit organization that
sponsors a wide variety of management seminars throughout the Northeast. In addition, it is heavily
involved in research into improved methods of teaching and motivating college administrators. The
seminar activity is largely supported by fees, and the research program is supported by membership
dues. Your boss has asked you to write a memo with the following:
a. A budget of the annual cash receipts and disbursements for 2010.
b. A cash budget for CS for each month of 2010.
c. Using the information developed in parts (a) - (b), identify two important operating problems
of CS.
CS operates on a calendar-year basis and is finalizing the budget for 2010. The following
information has been taken from approved plans, which are still tentative at this time:
SEMINAR PROGRAM
RevenueThe scheduled number of programs should produce $12,000,000 of revenue for the year.
Each program is budgeted to produce the same amount of revenue. The revenue is collected during
the month the program is offered. The programs are scheduled during the basic academic year and
are not held during June, July, August, and December. Twelve percent of the revenue is generated
in each of the first five months of the year and the remainder is distributed evenly during
September, October, and November. Direct expensesThe seminar expenses are made up of three
types:
Instructors' fees are paid at the rate of 70 percent of seminar revenue in the month following the
seminar. The instructors are considered independent contractors and are not eligible for CS
employee benefits.
Facilities fees total $5,600,000 for the year. They are the same for each program and are paid in
the month the program is given. ( 12% in each of the first five months etc)
Annual promotional costs of $1,000,000 are spent equally in all months except June and July
when there is no promotional effort.
RESEARCH PROGRAM
Research grantsThe research program has a large number of projects nearing completion. The
main research activity this year includes feasibility studies for new projects to be started in 2011. As
a result, the total grant expense of $3,000,000 for 2010 is expected to be paid out at the rate of
$500,000 per month during the first six months of the year.
SALARIES AND OTHER CS EXPENSES
The following costs were
Office leaseannual amount of $240,000 paid monthly at the beginning of each month.
General administrative expenses$1,500,000 annually or $125,000 per month. These are
paid in cash as incurred.
Depreciation expense$240,000 per year.
General CS promotionannual cost of $600,000, paid monthly.
Salaries and benefits are as follows:
Number of
Employees

Total Annual
Salaries
1 $ 50,000
3 120,000
4 120,000
15 375,000
5 75,000
22 220,000
50 $960,000
Employee benefits amount to $240,000 or 25 percent of annual salaries. Except for the pension
contribution, the benefits are paid as salaries are paid. The annual pension payment of $24,000,
based on 2.5 percent of total annual salaries, is due on April 15, 2010.
OTHER INFORMATION
Membership incomeCS has 100,000 members who each pay an annual fee of $100. The fee for
the calendar year is invoiced in late June. The collection schedule is as follows: July, 60 percent;
August, 30 percent; September, 5 percent; and October, 5 percent. Capital expendituresThe
capital expenditures program calls for a total of $510,000 in cash payments to be spread evenly over
the first five months of 2010. Cash and temporary investments at January 1, 2010, are estimated at
$750,000.
(CMA adapted)
Rubric Detail
Levels of Achievement
Criteria Novice Competent Proficient NOT ATTEMPTED
ANNUAL REC/DISB 03 Points 04 Points 5 Points 0 Points
MONTHLY 3.6 Points 4.8 Points 6 Points 0 Points
2 OPERATING PROBLEMS 3.6 Points 4.8 Points 6 Points 0 Points
ORGANIZATION/GRAMMAR 1.8 Points 2.4 Points 3 Points 0 Points

Learning outcome 3: Solving complex accounting problems.
AC 313 01 & 70
On January 1, 2012, Cunningham Company has the following defined benefit pension plan
balances.
Projected benefit obligation $4,503,000
Fair value of plan assets 4,217,500
The interest (settlement) rate applicable to the plan is 10%. Other data related to the pension plan
are as follows.
2012
Service costs $168,000
Prior service costs amortization -0-
Contributions (funding) to the plan 245,000
Benefits paid 212,100
Actual return on plan assets 267,200
Expected rate of return on assets 6%
Instructions
(a) Compute the pension expense for the year 2012.
(b) Prepare a pension work sheet inserting January 1, 2012, balances and showing December
31, 2011, balances.
(c) Prepare the journal entry recording pension expense.
Rubric: (50 points- points are noted in the blue circle)

Scorlng:
- > 43 ! Above accepLable
- 31 - 43 ! AccepLable
- < 31 ! 8elow accepLable
AC 313-71
!anuary 1, 2012, Cunnlngham Company has Lhe followlng deflned beneflL penslon plan balances
(all expressed ln Lhousands):

ro[ecLed 8eneflL CbllgaLlon (8C) $4,300
lalr value of lan AsseLs (A) 4,220
1he lnLeresL raLe on Lhe penslon llablllLy (also known as Lhe seLLlemenL raLe or dlscounL raLe) ls
10. CLher lnformaLlon relaLed Lo Lhe penslon plan and expressed ln Lhousands ls as follows:
2012

Servlce CosLs (SC) 168
lundlng (ConLrlbuLlons Lo Lhe enslon lan) 243
8eLlree 8eneflLs ald 212
AcLual 8eLurn on lan AsseLs 267
LxpecLed 8aLe of 8eLurn on AsseLs 6

8equlred: 8ound your answers Lo Lhe nearesL Lhousand and provlde compleLe numerlcal
supporL for numbers noL provlded.
a. lully compleLe Lhe penslon Lable provlded on Lhe nexL page wlLh Lhe lnformaLlon
provlded.
b. Show Lhe balance sheeL presenLaLlon of Lhe funded sLaLus of Lhe penslon plan aL boLh
!anuary 1, 2012 and uecember 31, 2012.
c. rovlde documenLaLlon for a penslon plan galn or loss lf one applles.
d. repare Lhe [ournal enLry recordlng penslon expense. rovlde numerlcal supporL
wherever necessary.

Grading Rubric by Part (50 Total Points):
Part a. Employment and Retirement Section: 24 points
6 points for correct calculation of 2012 Plan Assets (i.e., actual return is used)
4 points for correct calculation of 2012 Projected Benefit Obligation
4 points for correct calculation of 2012 Pension Expense
2 points for correct Expected Plan Asset Return
1 point for any item given in problem

Part b. Balance Sheet Presentation: 8 points
Part c. Gain or Loss on Plan Assets: 8 points (4 points for expected plan asset return of $253)
Part d. Journal Entry (either version was acceptable): 10 points


Solution to AOL Pension Quiz

a. Employment and retirement section
1 2 3 4 5 6 7 8 9 10
End
of
Year
Service
Cost
In-
terest
Cost
Ex-
pected
Plan
Asset
Return
Amort.
of prior
Service
Cost
Pension
Expense
Projected
benefit
obligation Funding
Retiree
benefit
pmnts
Plan
assets
0 $4,500

$4,220
2012 $168 $450 $253 N/A $365 $4,906 $245 $212

$4,520
* Actual gain of $267 increase plan assets

b. Balance Sheet Presentation
1/1/12 12/31/12
Change
in
pension
liability
Projected benefit obligation $4,500 $4,906 $406
Fair Value of plan assets $4,220 $4,520 $300
Net pension liability $280 $386 $106

c. Gain or loss on plan assets
Actual Return of $267 less Expected Return of 253 ($4,220 x .06) = Gain of $14

d. Pension expense journal entry

Pension expense $365
Net pension liability $106
Cash $245
Accumulated other comprehensive income from gain on pension assets $14

Pension expense $365
Plan assets ($267 + $245 - $212) $300
Pension benefit obligation ($168 +$450 - $212) $406
Cash (funding) $245
Acc. other comprehensive income from gain on plan assets ($267 - $253) $14

Learn|ng outcome 4: 1ransform from a student to an account|ng profess|ona| (|.e.
profess|ona||sm and eth|ca| conduct).

Instrument: AC 300 rofess|ona||sm Assessment
AC 300 Spring 2012 Fraud Cases: Group Project (10% of grade)
The Fraud Group Project will involve researching and presenting to the class fraud related to
their assigned company. Remember, professionalism is a constant theme in this class. That
being the case every group member is expected to do their fair share of the work involved. It is
up to each group how the work shall be delegated however, everyone must participate in
presenting the case to the class. Individuals, who do not participate fairly, will receive a zero for
this project.
Each student will evaluate the group members. If you do not submit an evaluation, you will
receive a 10 point deduction. The evaluation form will be discussed in a later class.
February 23
rd
Groups created and companies assigned to each group.
March 6
th
Each individual is required to submit an essay documenting the following
information related to their company.
Background of the company :
Key players:
o What position they held
o What part they played
What were the specific accounting issues
o What was done, what should have been done
Resolution:
o Consequences (e.g., SEC actions, fines, violations)
Note: The essay should be well written and include an introduction, body (several
paragraphs), and conclusion.
March 15
th
- Arrange to meet with group and start process of allocation of group
responsibilities. The presentation should be 15 20 minutes (no less; no more). All group
members should be actively involved and present some portion of the presentation. Presentations
should include information from above plus any additional information noteworthy related to the
fraud.
On the day of the presentation each Group is required to submit a hard copy of their
presentation. During the presentation, you should dress professionally as if presenting to senior
management of a company.
March 29
th
Each Group submits a hard copy outline (in a Word document) of their
presentation.
Presentations:
April 24
th
Groups I, II, III, and IV
April 26
th
- Groups V, VI, and VII
May 1
st
Submit Group member evaluations
Fraud Case assignments:
Group I: Enron
Group II: Waste Management
Group III: World Com
Group IV: Satyam Computer Services
Group V: Qwest Communications
Group VI: Tyco International
Fraud Case Rubric 100 points
Learning Outcome Transform to a member of the accounting profession (knowledge and
ethics)
Instrument
Fraud Essay (30 points)
Fraud Outline (10 points)
Fraud Powerpoint (10 points)
Oral Presentation (30 points)
Teamwork (20 points)
Fraud Essay - 30 points
9-10 4 - 8 0-3
Writing is organized
and coherent

- Uses a logical
structure
- Sophisticated
transitional
sentences
- Guides the reader
through the
progression of ideas
- May have random
organization, lacking
internal paragraph
coherence
- Uses few or
inappropriate
transitions
- Paragraphs may or
may not have topic
sentences or main
ideas or may to too
general or too
specific.
No appreciable
organization; lacks
transitions and
coherence
5 3 - 4 0 - 2
Spelling and
punctuation
Perfect or near perfect
spelling and
Minor spelling and
punctuation errors
Spelling and
punctuation errors.
punctuation
13 - 15 9 - 12 0 8
Essay answered the
information correctly:
- Introduction
- Background on the
company
- Key players
- Accounting issue
identified
- How should the
accounting issue
have been treated
- Resolution
- Closing/Summary
paragraph

Fraud Outline 10 points
9 - 10 5 - 8 0 - 5
Outline format

general description
of the presentation
- Includes purpose
- Main ideas
- Uses the principles
of parallelism,
coordination,
subordination, and
division.
- Perfect or near
perfect spelling and
punctuation
general description
of the presentation
- Includes purpose
- Main ideas
- Uses some of the
principles of
parallelism,
coordination,
subordination, and
division.
punctuation errors
- Does not provide a
logical, general
description of the
presentation.
- Lacks purpose and
main ideas.
- Not sufficiently
detailed
- Does not possess
the principles of
parallelism,
coordination,
subordination, and
division
- Spelling and
punctuation errors.


Fraud Powerpoint 10 points
9 - 10 5 - 8 0 - 5
Powerpoint slides

- Professional looking
- Clearly communicates
information
- Font large enough to
be read in the back of
the room
- Uses key words and
phrases
- Perfect or near perfect
spelling and
punctuation
- Professional
looking
- Clearly
communicates
information
- Font large enough
to be read in the
back of the room
- Uses key words
and phrases
punctuation
- Spelling and
punctuation errors
Oral Presentation 30 points
27 - 30 21 - 26 0 - 20
Individual
presentation
- Appearance and dress is
professional and
conservative
- Exhibits poise and confidence
during the presentation
- Demonstrates eye contact
with the audience
- Does not read presentation
- Stands still with good
posture
- Speaks loudly and pace is
not rapid
- Is well prepared
- Some aspects of appearance and
dress are not professional and
conservative.
Lacks some aspects of poise and
confidence during the
presentation.
Does not always demonstrate eye
contact with the audience.
May read some of the
presentation
May not always stand still with
good posture.
- Voice may be soft or speaks too
fast.
- Is prepared.
- Not prepared
- Not professionally dressed
- Lacks confidence
- No eye contact
- Reads presentation
- Voice too soft


Teamwork 20 points (based on feedback from team members; they will assess each other)
18 - 20 14 - 17 10 - 14 0 - 10
Well prepared in
advance
setting group goals
and agendas
in discussion and
asks questions
shows
understanding by
paraphrasing or by
acknowledging and
building
on others ideas
Draws out ideas or
concerns of others,
especially those
who have said little
Re-visits issues or
ideas that need more
attention
Helps the group stay
on track
Summarizes group
decisions and action
assignments
and carries own
share of the groups
responsibilities
Well prepared in
advance
setting group goals
and agendas
in discussion and
asks questions
shows understanding
by paraphrasing or
by acknowledging
and building
on others ideas
and carries own
share of the groups
responsibilities

Moderately
prepared in
advance
Takes some part in
setting group goals
and agendas
Participates in
discussions, letting
others provide the
direction
Occasionally
introduces
information or asks
questions
If likely to be
absent or late,
informs others
ahead of time and
arranges to cover
own
responsibilities

Little or no advance
preparation
Lets others set and
pursue the agenda
Observes passively
and says little or
nothing
Responds to
questions
Gives the
impression of
wanting to be
somewhere else
Attendance record
is haphazard and
inconsistent; may
be absent or late
without notice

Scorlng:

90-100 - Above accepLable
70-89 - AccepLable
less Lhan 70 - 8elow accepLable
Accounting: BSBA Goals Assessed in Accounting Fall 2012 Results
1
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Apply business research skills AC211 255 10 112 (44%) 123 (48%) 20 (8%)
1he lndlvldual porLlon of a flnanclal sLaLemenL analysls pro[ecL ls used Lo assess each sLudenL's
buslness research skllls, analyLlcal skllls, crlLlcal Lhlnklng. Lach sLudenL was asslgned Lo analyze
Lhe flnanclal sLaLemenLs of a company. Lach lndlvldual professor selecLed Lhe companles for
analysls so LhaL Lhere would noL be sLudenLs ln dlfferenL secLlons worklng LogeLher and/or
copylng each oLher's work. 1he pro[ecL requlred sLudenLs Lo access Lhe SLC webslLe and
reLrleve Lhe 10-k for Lhelr asslgned company. 1he pro[ecL Lhen requlred ldenLlflcaLlon of cerLaln
aspecLs of Lhe company, analysls and Lrends of key llne lLems on Lhe four flnanclal sLaLemenLs,
audlLor reporL lnformaLlon, lnvenLory meLhod and depreclaLlon meLhods used, and calculaLlon
of approxlmaLely 10 lndusLry raLlos. As noLed ln Lhe above Lable, over 92 of Lhe sLudenLs
performed aL an accepLable level or above ln fall 2012. 1he proporLlon of sLudenLs scorlng
accepLable or above was sllghLly hlgher Lhan Lhe 89 ln sprlng 2012 and 83 ln fall 2011.
SlgnlflcanLly more sLudenLs performed aL an above accepLable level ln Lhe fall 2012 (44) Lhan
ln sprlng 2012 (18), fall 2011 (19) and sprlng 2011 (28).
erformance on Lhls learnlng ob[ecLlve exceeds our goal of aL leasL 80 performlng aL an
accepLable level or beLLer. 1he proporLlon of sLudenLs performlng aL an accepLable level or
beLLer ln fall 2012 was an lmprovemenL over sprlng 2012 (89) and conslsLenL resulLs of
roughly 83 of sLudenLs performlng aL accepLable or above slnce fall 2009. 1he marked
lncrease ln Lhe proporLlon of sLudenLs scorlng above accepLable from prlor semesLers (sprlng
2012 18, fall 2011 19, sprlng 2011 28) may be aLLrlbuLed Lo lncreased lnsLrucLor dedlcaLlon
ln Leachlng pedagogy.
Cur focus was prevlously on ralslng Lhe performance of weaker sLudenLs Lo aL leasL an
accepLable level and more aLLenLlon was devoLed Lo geLLlng our beLLer sLudenLs Lo achleve
superlor resulLs.
1he performance of sLudenLs on Lhls learnlng goal ls aL a reasonably hlgh level, exceedlng our
LargeL for Lhls learnlng goal. We are currenLly devoLlng our lmprovemenL efforLs Lo oLher
learnlng goals where performance ls poorer. Powever, we should develop sLraLegles Lo fosLer
above accepLable performance.
2
AcLlon lLems:
1. AC 211 faculLy should share pedagoglcal changes Lhey belleve led Lo an lncreased
proporLlon of sLudenLs achlevlng above accepLable performance. 8esL pracLlces should
be documenLed.
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
3) Interpret external financial
statements
AC211 255 10 128 (50%) 97 (38%) 30 (12%)
SLudenLs musL demonsLraLe Lhe Lechnlcal knowledge and analyLlcal ablllLy Lo correcLly compuLe
flnanclal raLlos and show LhaL Lhey undersLand Lhelr meanlng. 1hey musL demonsLraLe crlLlcal
Lhlnklng skllls by maklng declslons on wheLher or noL Lhey would lnvesL ln or lend Lo Lhe
company. ln oLher words, Lhey musL adopL Lwo dlfferenL perspecLlves and defend and explaln
Lhe declslon Lhey make ln each perspecLlve. ln prlor semesLers, we measured sLudenL
performance uslng crlLerla for boLh lnvesLlng and lendlng declslons wlLh sLudenL performance
greaLer for lnvesLlng Lhan lendlng. WlLh greaLer emphasls on Lhe lender's perspecLlve, rlsks and
rewards ln course coverage, Lhls gap has been ellmlnaLed. 8eglnnlng fall 2012 we changed Lo a
slngle overall assessmenL of Lhls learnlng ouLcome.
1hls semesLer Lhe percenLage of sLudenLs wlLh an accepLable or beLLer response lncreased 3
from Lhe sprlng 2012 semesLer: 88 percenL of Lhe sLudenLs dlscussed valld reasons on
wheLher Lo lnvesL ln and Lo lend Lo Lhe company Lhey are analyzlng versus 83 lasL semesLer.
1hese resulLs also exceeded Lhe fall 2011 and sprlng 2011 resulLs when, on average, 83 and
78, respecLlvely, of sLudenLs were accepLable or beLLer on boLh Lhe lnvesLmenL and lendlng
declslons. As ln fall 2011 and sprlng 2012, Lhe fall 2012 resulLs exceed Lhe goal of 80 of
sLudenLs achlevlng aL leasL accepLable performance.
CrlLlcal 1hlnklng: 1o demonsLraLe adequaLe crlLlcal Lhlnklng skllls, sLudenLs had Lo reference,
calculaLe, and lnLerpreL raLlos for Lhelr company ln maklng declslons on wheLher or noL Lhe
sLudenL would lnvesL ln or lend Lo Lhe company. As noLed above, Lhe proporLlon of sLudenLs
performlng aL an accepLable level exceeded our goal and lncreased 3 from sprlng 2012. 1he
below accepLable sLudenLs were unable Lo connecL Lhe lndlvldual quesLlons on Lhe flnanclal
sLaLemenLs and Lhe flnanclal raLlos Lhey calculaLed Lo Lhe lendlng and lnvesLlng declslons.
SLudenLs LhaL achleved above accepLable scores demonsLraLed use of oLher references (such as
3
Lrends, lndusLry raLlos, and compeLlLlve companles) and oLher flnanclal and non-flnanclal
lnformaLlon abouL Lhe company and lndusLry Lo provlde conLexL and augmenL Lhelr flnanclal
analysls when maklng Lhelr declslon. 1he hlgher proporLlon of sLudenLs LhaL achleved above
accepLable performance ln fall 2012 was slgnlflcanLly hlgher Lhan sprlng 2012 (30 versus 19)
may be aLLrlbuLed Lo lncreased lnsLrucLor dedlcaLlon ln Leachlng pedagogy.
AnalyLlcal skllls: 1he ma[orlLy of sLudenLs were able Lo calculaLe Lhe flnanclal sLaLemenL raLlos
approprlaLely. ln some cases, however, Lhelr lnLerpreLaLlon of Lhe calculaLed raLlo was slmply
Lhe meanlng of Lhe raLlo Laken from Lhe LexLbook. 1hey dld noL connecL Lhe raLlo Lo Lhe
company Lhey were analyzlng.
As noLed ln Lhe analysls of crlLlcal Lhlnklng and analyLlcal skllls, Lhe ma[or lssues for weaker
sLudenLs were an lnablllLy Lo connecL Lhe raLlo analysls Lo Lhe declslons and a lack of
undersLandlng Lhe meanlng of Lhe raLlos. AcLlon lLem 3 below should address Lhls weakness, so
parLlcular emphasls wlll be placed on lLem 3.
AcLlon lLems:
1. 1he lead coordlnaLor should remlnd lnsLrucLors, especlally new lnsLrucLors, Lo lnLroduce
Lhe flnanclal sLaLemenL analysls pro[ecL when coverlng chapLers 3 and 13 durlng Lhe
coordlnaLlng meeLlng aL Lhe beglnnlng of Lhe semesLer.
2. ulscuss lndusLry selecLlon wlLh lnsLrucLors aL Lhe coordlnaLlon meeLlng aL Lhe beglnnlng
of Lhe semesLer. 1ry Lo choose lndusLrles LhaL wlll resonaLe wlLh sLudenLs whlle also
provldlng reasonable raLlos for analysls.
3. Lncourage lnsLrucLors Lo dlscuss Lhe meanlngs of raLlos uslng company examples Lo
provlde conLexL and enhance sLudenLs' ablllLles Lo lnLerpreL Lhe raLlos.
4
Append|x
Assessment |nstrument: AC 211 Introduct|on to I|nanc|a| Account|ng Ia|| 2012
IINANCIAL kLCk1ING & ANALSIS 1LAM kCILC1
(1he |nd|v|dua| port|on of the pro[ect |s used for assess|ng |earn|ng ob[ect|ve 1.1)
(1he responses to |tems 4 & S on the |nd|v|dua| port|on of the pro[ect are used for assess|ng
|earn|ng ob[ect|ve 1.3)
!"#$ #&& '()*!+,*'-() ."/-!" 0-+ ."1'(
'234543678 !9:;<= >$69? @99A BCD
Each peison will be assigneu a company at the beginning of the semestei. You shoulu acquiie the
company's 1u-K at the EBuAR link at the SEC website (www.sec.gov). You shoulu wiite a shoit
iepoit answeiing the following questions about the assigneu company. Foi this pioject, iefei to
youi book especially Chapteis S anu 1S.
IF Y00 N0ST REP0RT A RATI0, A PERCENTAuE, 0R ANSWER IF TBERE BAS BEEN A CBANuEE
0-+ F+)* )G-@ ,#&,+&#*'-(). Please note that this is inuiviuual woik, any inuication of
copying oi plagiaiism woulu iesult in a zeio foi this pioject anu subject to the Acauemic Bonesty
Policy guiuelines. Refei to Chapteis S anu 1S.
1. ueneial infoimation:
1. Wheie is the coipoiate heauquaiteis, what city anu state. Wheie uiu you finu this
infoimation.
2. 0n what uay of the yeai uoes its fiscal yeai enu. Wheie uiu you finu this infoimation.
S. What types of piouucts oi seivices uoes it sellseive. Wheie uiu you finu this infoimation.
4. When anu wheie is the next annual stockholueis' meeting. Wheie uiu you get this
infoimation.
2. Repoit of Inuepenuent Exteinal Auuitoi
1. Who is the coipoiation's inuepenuent auuitoi anu in what city aie they locateu.
2. Boes the auuitoi believe the financial statements weie piesenteu faiily. What statements
in the auuitoi's opinion suppoit youi conclusion.
S. Foi how many yeais uoes it piesent complete balance sheets. Income statements. Cash flow
statements.
4. Income Statement
1. Biu its ievenue (oi sales) inciease oi ueciease ovei the last yeai. What was the peicentage
change. ((this yeai-last yeai)last yeai)
2. Besciibe the company's ievenue iecognition policy. Wheie uiu you finu this. What aie you
some factois that the company useu in ueteimining its ievenue iecognition policy.
S. Biu its cost of goous solu inciease oi ueciease ovei the last yeai. What was the peicentage
change. What aie some ways to ueciease cost of goous solu anu what effect woulu this
have on gioss piofit.
4. Compaie the peicentage change in ievenue to the change in cost of goous solu. Aie they
similai. If they aie not, uoes Nanagement say anything about ievenues anu costs that
might explain a uiffeience. If they uo, what ieasons uiu management give foi the change.
(Look in Nanagement Biscussion & AnalysisNB&A)
5
S. Biu its net income inciease oi ueciease ovei the last yeai. What was the peicentage
change.
6. What methou of uepieciation uoes the company use. Wheie uiu you finu this. What aie
some ieasons that a Company woulu use one methou of uepieciation ovei anothei.
7. What amount is iepoiteu as uepieciation expense foi the cuiient yeai. Wheie uiu you finu
this. Bow much cash was useu to pay foi this expense.
S. Balance Sheet
1. Biu its total assets inciease oi ueciease ovei the last yeai. What was the peicentage
change. What was the laigest asset.
2. Iuentify the balance sheet accounts that weie most significant in explaining the changes in
total assets foi the coipoiation. What events might explain the ieasons foi the changes in
these accounts. Wheie uiu you get this infoimation.
6. Cash Flow Statement
1. Biu the company have a cash inflow oi outflow fiom opeiating activities. Which statement
uiu you use to finu this. What item(s) causeu it to be an inflow oi outflow.
2. Biu the company have a cash inflow oi outflow fiom investing activities. What was the
laigest item in investing activities (eithei a use of cash oi souice of cashiepoit the
laigest).
S. Biu the company have a cash inflow oi outflow fiom financing activities. What was the
laigest item in financing activities (eithei a use of cash oi souice of cashiepoit the
laigest).
7. Piofitability iatios
1. Compute the asset tuinovei iatio anu explain its meaning.
2. Compute the net piofit maigin iatio foi the latest thiee yeais anu explain its meaning. Bo
you see any tienu.
S. Compute the company's gioss piofit peicentage foi the latest thiee yeais; is theie a tienu
ovei the thiee yeais.
4. Compute the ietuin on equity (R0E) foi the last thiee yeais. Explain its meaning. Is theie a
tienu inuicateu.
S. In compaiison to the pievious yeai, has the coipoiation impioveu its ability to geneiate a
piofit. }ustify youi answei with the iatios you calculateu in b, c anu u. Boes management
offei an explanation foi any changes oi stability in the piofitability of the coipoiation.
6. What is the basic eainings pei shaie foi continuing opeiations as it appeais in the income
statement foi the past two yeais. Was the change in EPS a iesult of changes in the
numeiatoi oi uenominatoi.
8. Liquiuity
1. Compute the company's cuiient iatio foi the last two yeais anu explain its meaning. Is the
cuiient iatio auequate.
2. Compute the company's ieceivable tuinovei foi the last two yeais anu explain its meaning.
6
S. What amount of inventoiy uoes the company have at the enu of the yeai. Biu it inciease oi
ueciease ovei the last yeai. Wheie uiu you finu this.
4. Compute the inventoiy tuinovei iatio. Bow is a low oi high tuinovei iatio significant.
S. What inventoiy costing methou uoes the company use. Wheie uiu you finu this.
9. Solvency iatios
1. Compute the uebt-to-asset iatio foi the last two yeais anu explain its meaning. Bow uiu the
uebt position change ovei the last yeai. What weie the souices of these changes. Woulu
potential lenueis piefei the uebt to total assets iatio to be laigei oi smallei. Why.
2. Compute the times inteiest eaineu foi the past two yeais anu explain its meaning.
1u. Woulu you invest in this company. Why oi why not. Suppoit youi answei.
11. Woulu you lenu this company money. Why oi why not. Suppoit youi answei.
)6HI4=? =J9 K;88;L42M ;2 @99A BC
1. Youi answeis to the all questions 1-11. Label anu numbei the answeis to the questions.
2. A copy of the foui financial statements (uo not incluue the notes).
S. }ust staple youi pioject, uo not put in a foluei.
N897O9 2;=9?
BP F7A9 =L; Q;:49O ;K R;6< <9:;<=E ;29 =; H9 J72393 42 =; =J9 :<;K9OO;<E =J9
O9Q;23 =; H9 6O93 42 =J9 *97I N<;S9Q=P *J9 '234543678 <9:;<= L488 2;= H9
<9=6<293 =; R;6P
TP &7=9 :<;S9Q=O L488 2;= H9 7QQ9:=93P *; H9 7OO4M293 =; 7 M<;6:E R;6 I6O= O6HI4=
R;6< :<;S9Q= ;2 =J9 369 37=9P
*97I N<;S9Q=: >$69? @99A BUD
Aftei you submit youi Inuiviuual Repoit, you will be assigneu to a gioup. Each membei of the
gioup woulu have woikeu on a uiffeient company foi theii inuiviuual iepoit.
1. Piepaie a table with columns useu foi the companies (latest yeai) anu inuustiy, anu
iows foi each of the following items you calculateu:
4a Peicentage change in ievenues
4c Peicentage change in cost of goous solu
4e Peicentage change in income
Sa Peicentage change in assets
7a Asset tuinovei
7b Net piofit maigin
7c uioss piofit peicentage
7u Retuin on equity
8a Cuiient iatio
8b Receivable tuinovei
8c Inventoiy tuinovei
9a Bebt to asset iatio
9b Times inteiest eaineu
7
0se the table to help you wiite a iepoit compaiing anu contiasting the companies anu
the inuustiy iatios (wheie applicable) on these items. 0se the copy of youi inuiviuual
iepoit anu the iatios pioviueu in the back of the assignment to piepaie this table.
2. Evaluate the companies using the inuustiy iatios founu on Inuustiy Ratio Repoit foi
Restauiants (the inuustiy is SIC S812) which is attacheu.
S. Befoie you piepaie the iepoit, evaluate each company's iesults foi ieasonableness. If a
company is veiy uiffeient fiom the othei companies, theie may be a mistake. If it is
veiy uiffeient (i.e. not a mistake), tiy to finu out why anu iepoit it.
4. Which company appeais to be the best investment anu why.
S. Which company woulu you lenu money to anu why.
)6HI4= ;2 @99A BU
1. The table on iequiiement 1 anu youi answeis to questions 2-S above. Theie is no neeu to
attach youi inuiviuual iepoits.
#334=4;278 '2O=<6Q=4;2O?
! The inuiviuual iepoits aie uue Week 1u of the semestei anu team iepoits aie uue Week 14
of the semestei. The inuiviuual iepoit will not be ietuineu, keep a copy foi youiself anu foi
piepaiing the team iepoit. Both the inuiviuual anu team iepoits "typeu". A copy of the foui
Financial Statements (but not the Financial Notes) foi youi company shoulu be attacheu to
inuiviuual iepoits. Any figuies useu fiom these iepoits shoulu be highlighteu oi ciicleu in
coloieu ink so that the ieviewei can easily tiace amounts anu infoimation tofiom the
Pioject to the 1u-K.
! Nake suie that you 'ieau' the 1u-K. A lot of the infoimation to answei youi questions can
be gleaneu fiom it anu you can use it to assist you in answeiing youi question foi the
pioject as long as you cite it piopeily. If you attempt to hunt anu peck foi the answeis (oi
use "Ctil F") anu not use the infoimation piesenteu in the 1u-K, such as management's
uiscussion anu analysis, youi pioject will be auveisely affecteu.
! Any iueas, paiaphiasing oi quoting neeus to be Q4=93 723 K;;=2;=93!! 0sing thoughts,
woius oi phiases that aie not youi own without citing the piopei souice is plagiaiism.
! Inuiviuual iepoits count 7u% anu the team iepoit Su% towaiu each stuuent's oveiall giaue
foi the pioject.
! Each stuuent will evaluate hishei team membei contiibution to the pioject anu must be
submitteu with the gioup pioject on the uue uate. The piofessoi may use this evaluation to
ieuuce the team membei's "team" giaue.
! 0se the Foim 1u-K fiom the latest yeai (shoulu have been submitteu in 2u12 oi 2u11).
! Please use piopeily constiucteu sentences, giammai (i.e. spelling, punctuation anu use of $
signs), anu logical ieasoning. Bo not use ciiculai ieasoning. Nake suie that you answei the
questions as to "why" the numbeis have changeu. While it is ok to uefine something, please
uo not think that is an answei. Put the time, thought anu effoit into answeiing the
questions. If you go foi the minimum answei, you giaue will ieflect the minimum effoit.
Nake suie that you have youi team membeis ieau youi pioject as sometimes you will not
see something obvious as you aie the authoi.
! Piesentation uoes count.
8
Inuustiy: RESTA0RANTS
ANN0AL RATI0 REP0RT
Souice: Compustat
LIQ0IBITY
Cuiient Ratio u.9
Quick Ratio u.61
ACTIvITY
Inventoiy Tuinovei S6.87
Receivables Tuinovei S6.6S
Total Asset Tuinovei 1.22
Aveiage Collection Peiiou (Bays) 1u
Bays to Sell Inventoiy 1u
0peiating Cycle (Bays) 2u
PERF0RNANCE
SalesNet Piopeity, Plant & Equip 1.81
SalesStockholuei Equity 2.67
PR0FITABILITY
0peiating Naigin Aftei Bepi (%) 1u.47
Pietax Piofit Naigin (%) 1u.7
Net Piofit Naigin (%) 7.26
Retuin on Assets (%) 8.6S
Retuin on Equity (%) 19.S9
Retuin on Investment (%) 11.9S
LEvERAuE
Inteiest Coveiage Befoie Tax 8.4
Inteiest Coveiage Aftei Tax 6.u2
Long-Teim BebtCommon Equity (%) 62.11
Long-Teim BebtShihlui Equity(%) 62.u4
Total BebtInvesteu Capital (%) 4u.S8
Total BebtTotal Assets (%) 29.41
Total AssetsCommon Equity 2.24

#, TBB #OO9OOI92= !6H<4Q? $9I;2O=<7=93 .6O429OO !9O97<QJ )A488O
!"#$% !''%()*"+%? Reseaich exceeueu iequiiements; all of the "Acceptable"
ciiteiia accomplisheu; ieseaicheu auuitional infoimation about the inuustiy.
!''%()*"+%? Reseaich met iequiiements; 1u-K ietiieveu; completeu a majoiity of
the following business ieseaich skills: financial statements utilizeu foi most of the
calculations; NB&A utilizeu; footnote citeu; auuit iepoit citeu.
,%+#- !''%()*"+%? Reseaich uiu not meet iequiiements; not completeu a
majoiity of the following business ieseaich skills: financial statements utilizeu foi
most of the calculations; NB&A utilizeu; footnote citeu; auuit iepoit citeu.

9
#, TBB #OO9OOI92= !6H<4Q? '2=9<:<9=42M "V=9<278 /4272Q478 )=7=9I92=O

Ciiteiia
!"#$% !''%()*"+%? Reasons foi investinglenuing exceeu iequiiements; all of the
"Acceptable" ciiteiia accomplisheu; incluueu compaiisons to inuustiy.
!''%()*"+%? Reasons foi investinglenuing meet iequiiements; ieasons aie suppoiteu
by iefeiences to appiopiiate iatios.
,%+#- !''%()*"+%? Reasons foi investinglenuing uo not meet iequiiements; ieasons
aie N0T suppoiteu by iefeiences to appiopiiate iatios.

10
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
2) Apply proper accounting
standards and proper cost
accounting concepts to solve
problems
AC 211
AC 212
237
156
10
6
94 (40%)
18 (12%)
104 (44%)
65 (42%)
39 (16%)
73 (47%)
All Len secLlons of AC 211 (lnLroducLlon Lo llnanclal AccounLlng) and seven secLlons of AC 212
(lnLroducLlon Lo Managerlal AccounLlng) were requlred Lo lnclude a common (Lo Lhe respecLlve
courses) seL of mulLlple-cholce quesLlons as parL of or for Lhelr flnal examlnaLlon. ln AC 212,
Lhe seL of LwenLy mulLlple-cholce quesLlons were welghLed 30-40 of each lnsLrucLor's flnal
examlnaLlon conslsLenL wlLh prlor semesLers. ln AC 211, sLudenLs compleLed a seL of flfLy
mulLlple cholce quesLlons LhaL comprlsed Lhe enLlre flnal examlnaLlon, whereas ln prlor
semesLers, Lhe seL of mulLlple cholce quesLlons was comprlsed of LwenLy quesLlons and was a
porLlon of Lhe flnal examlnaLlon. 1he Lhresholds for above accepLable and accepLable
performance were malnLalned aL 80 and 60, respecLlvely.
1he medlan score for AC 211 was 38 (mean score 37.73), and 84 of Lhe sLudenLs achleved an
accepLable score (aL leasL of 30 quesLlons answered correcLly) or beLLer. 1hls exceeds our goal
of 80 of sLudenLs achlevlng an accepLable or beLLer score and ls a 4 lmprovemenL over
sprlng 2012, 9 over fall 2011 (ad[usLed for Lhe new performance Lhresholds), and 23 over
sprlng 2011 (ad[usLed for Lhe new performance Lhresholds). 1he fall 2011 and sprlng 2011
comparlsons are made when only 39 of sLudenLs scored aL an accepLable level or beLLer.
1he medlan score for AC 212 was 12 (mean score 11.8), and only 33 of Lhe sLudenLs achleved
an accepLable score (aL leasL of 12 quesLlons answered correcLly) or beLLer. 1hls was well below
Lhe goal of 80 of sLudenLs performlng aL an accepLable level or beLLer, and well below Lhe
sprlng 2012 performance, when 73 of sLudenLs performed aL an accepLable level or beLLer.
A number of lnlLlaLlves were lmplemenLed ln AC 211 durlng fall 2012. 1he emphasls on
lnsLrucLors' uslng Lhe onllne homework manager avallable Lhrough Lhe LexLbook's publlsher
conLlnued from Lhe prlor Lwo semesLers sprlng 2012 and fall 2011, when many lnsLrucLors
recelved Lralnlng ln Lhe use of Lhe homework manager. 1he seL of mulLlple-cholce quesLlons
lncreased from LwenLy Lo flfLy quesLlons and Lhe quesLlons comprlsed 100 of Lhe flnal exam,
provldlng more moLlvaLlon for sLudenLs Lo sLudy for Lhe common flnal. A common flnal exam
revlew was lnsLlLuLed among all secLlons lncludlng lnsLrucLlon on answerlng mulLlple-cholce
11
quesLlons ln sprlng 2012 and common revlews for all secLlons for all exams were lnsLlLuLed by
Lhe coordlnaLor, and sLudenLs were encouraged Lo sLudy uslng Lhe LexLbook's sofLware wlLh a
pracLlce seL of quesLlons. 1he dlsLrlbuLlon of sLudenL scores for AC 211 ls shown ln Lhe Lable
below:
AC 211: Intiouuction to Financial Accounting Peicentage of Total Stuuents
Spiing
2u11
Fall
2u11
Spiing
2u12
Fall
2u12
Well above acceptable (9u% oi moie coiiect) 7% 1u% 1S% 1S%
Above acceptable (8u-89% coiiect) 14% 1S% 22% 2S%
Acceptable (7u-79% coiiect) 16% 29% 2u% 28%
Naiginally acceptable (6u-69% coiiect) 22% 2u% 22% 16%
Below acceptable (fewei than S9% coiiect) 41% 2S% 2u% 16%

WlLh Lhe added revlew sesslons and Lhe enLlre focus of Lhe flnal exam on Lhe mulLlple-cholce
quesLlons, Lhe blggesL shlfL ln fall 2012 was ln Lhe proporLlon of sLudenLs achlevlng accepLable
raLher Lhan marglnally accepLable performance. 1here was a smaller proporLlonal reducLlon
sLudenLs performlng below accepLable and a smaller lncrease ln Lhe proporLlon of sLudenLs
above accepLable.
As shown ln Lhe Lable below, Lhe fall 2012 resulLs ln AC 212 reversed Lhe lmprovemenL shown
ln sprlng 2012. AccepLable performance was also below Lhe level achleved ln 2011 and ls well
below Lhe 80 goal.
AC 212: Intiouuction to Nanageiial Accounting Peicentage of Total Stuuents
Spiing
2u11
Fall
2u11
Spiing
2u12
Fall
2u12
Well above acceptable (9u% oi moie coiiect) 2% 2% 7% 4%
Above acceptable (8u-89% coiiect) 1S% 12% 22% 8%
Acceptable (7u-79% coiiect) 26% 17% 24% 14%
Naiginally acceptable (6u-69% coiiect) 29% Su% 2u% 28%
Below acceptable (fewei than S9% coiiect) Su% S9% 27% 47%
uurlng Lhe lall 2012 semesLer, Lhe common flnal exam conslsLlng of 20 mulLlple-cholce
quesLlons underwenL a slgnlflcanL revlslon LhaL was agreed upon by Lhe faculLy Leachlng Lhe
course. lL was belleved LhaL Lhls revlslon would be a beLLer lndlcaLor of sLudenL achlevemenL.
ln Lhe fall, Lhe faculLy also swlLched Lo a new LexL (same seL of auLhors).
1he revlsed common flnal exam had a few more compuLaLlonal (raLher Lhan LheoreLlcal)
problems Lhan Lhe prlor common flnal. An analysls of lall 2012 resulLs clearly lndlcaLes LhaL
some quesLlons should be modlfled. More lmporLanLly, however, Lhe analysls reveals several
lnsLances ln whlch faculLy should emphaslze concepLs ln greaLer deLall. Slnce Lhe 20 quesLlons
were revlsed relaLlvely laLe ln Lhe semesLer, Lhe faculLy were unable Lo embed Lhe quesLlons ln
exams LhroughouL Lhe semesLer. 8elow ls a llsLlng of Lhe 'problem quesLlons':
2. llxed CosLs er unlL: ulsLlngulshlng beLween Lhe behavlor of flxed cosLs per unlL and
varlable cosLs per unlL should be emphaslzed more by faculLy. 1he LexLbook lncludes a very
good summary of Lhe effecL of volume changes on LoLal and per unlL flxed and varlable
cosLs.
12
3. Plgh-Low MeLhod: 1he prevlous quesLlon allowed sLudenLs who chose Lhe hlghesL and
lowesL cosLs raLher Lhan Lhe hlghesL and lowesL acLlvlLy levels Lo geL a correcL answer. 1he
revlsed quesLlon penallzed Lhose sLudenLs who dldn'L use Lhe x values. All lnsLrucLors need
Lo dlscuss Lhe reasons for uslng Lhe lndependenL varlable Lo choose daLa polnLs when uslng
Lhe hlgh-low meLhod.
8. AcLlvlLy-8ased CosLlng. 1he facL LhaL Lhls problem requlred 3 separaLe calculaLlons dld noL
lend lLself well Lo a mulLlple cholce answer. 8ecause of Lhls facL, a calculaLlon-based
quesLlon should probably noL be lncluded ln Lhe fuLure. lnsLead, a second LheoreLlcal
quesLlon could be added or one LheoreLlcal quesLlon should be consldered sufflclenL.
9. CosL-volume-roflL Craph: uesplLe Lhe facL LhaL Lhe LexLbook emphaslzed Lhe Cv Craph,
Lhere ls some evldence LhaL noL all lnsLrucLors adequaLely covered Lhls Loplc durlng class.
13. varlable CosLlng lncome SLaLemenL: laculLy should elLher cover Lhe dlsLlncLlon beLween an
absorpLlon cosLlng lncome sLaLemenL and a varlable cosLlng lncome sLaLemenL ln more
deLall or conslder ellmlnaLlng Lhe chapLer slnce very few colleges and unlverslLles cover Lhls
Loplc ln an lnLroducLory managerlal accounLlng course.
13. 8aw MaLerlals 8udgeL. Slnce Lhe LexLbook explalned how Lo converL producLlon unlLs lnLo
measures such as pounds, Lhe facL LhaL 2 pounds per unlL was requlred shouldn'L have been
an obsLacle. A more llkely reason for Lhe lower Lhan expecLed resulLs was Lhe facL LhaL
many sLudenLs overlooked Lhe facL LhaL Lhe quesLlon asked for second and noL flrsL quarLer
resulLs.
17. 8eLurn on lnvesLmenL: lL ls unclear why a number of sLudenLs had dlfflculLy wlLh Lhls
quesLlon oLher Lhan Lhe facL LhaL some faculLy may noL have devoLed enough Llme Lo Lhls
Loplc because of classes Lhey losL Lo classes belng cancelled due Lo Lhe weaLher.
8esulLs for AC 211 are above goal. 1he mulLlple-cholce quesLlon seL was revlewed Lo ensure
adequacy of knowledge assessmenL and lncreased Lo flfLy mulLlple-cholce quesLlons.
AddlLlonally, more conslsLenL welghLlng of Lhe flnal exam was applled across Lhe secLlons. 1he
mulLlple cholce exam revlew sesslons were very encouraglng and AC 211 lnsLrucLors are
plannlng Lo furLher encourage sLudenL use of Lhese exam revlew sesslons. Cne lnsLrucLor
plloLed Lhe use of on-llne learnlng modules on dlfflculL Loplcs, whlch were well recelved. 1hls
wlll be shared wlLh oLher lnsLrucLors for unlversal use.
AC 211 lnsLrucLors also felL LhaL Lhere should be some Lype of gradlng mechanlsm Lo ensure
LhaL sLudenLs LhaL perform very poorly on Lhe common quesLlons do noL pass Lhe course. ln
prlor semesLers, Lhe LwenLy common flnal quesLlons represenLed only a porLlon of Lhelr flnal
exam. ln Lhe fall 2012, Lhe flfLy mulLlple cholce quesLlons represenLed 100 of a sLudenL's flnal
examlnaLlon grade Lo moLlvaLe sLudenLs Lo expend more efforL on sLudylng for Lhe quesLlons.
new lnsLrucLors LaughL AC 212 durlng Lhe fall semesLer. lL ls lmporLanL LhaL more guldance be
provlded Lo Lhem (and Lo all faculLy) abouL course conLenL and assurance of learnlng
procedures for AC 212.
AcLlon lLems
13
lor AC 211
1. 8evlew Lhe flfLy mulLlple-cholce quesLlons Lo ensure adequacy of knowledge
assessmenL.
2. Conslder fllpplng Lhe classroom" Lechnlques whereby lnsLrucLors spend less class Llme
on lecLure and more class Llme on worklng problems.
3. Cn a Lrlal basls embed Lhe common quesLlons ln exams LhroughouL Lhe semesLer.
erhaps repeaL Lhe same common quesLlons or a seL of slmllar common quesLlons on
Lhe flnal exam Lo compare wlLh sLudenL performance on Lhe embedded quesLlons.
4. ConLlnued and expanded use of common exam revlews and LuLorlng sesslons (ouLslde
class Llme). Lmploy Lhe sesslons LhroughouL Lhe semesLer.
3. lloL shorL onllne learnlng modules coverlng dlfflculL Loplcs.
lor AC 212
1. Modlfy some quesLlons on Lhe exam Lo clarlfy or replace as deemed approprlaLe by Lhe
faculLy.
2. Conslder noL coverlng such chapLers as AbsorpLlon CosLlng versus varlable CosLlng (and
even A8C) slnce Lhese Loplcs are covered ln our CosL AccounLlng course and Lhe value of
Lhese Loplcs Lo non-accounLlng ma[ors (Lhe greaL ma[orlLy of sLudenLs Laklng AC 212) ls
quesLlonable. 1he exLra Llme could well be devoLed Lo Lhe flne polnLs of more crlLlcal
Loplcs dlscussed above and Lo provlde more pracLlce ln bulldlng a comprehenslve
budgeL before sLudenLs engage Lhe budgeL pro[ecL.
3. Lmbed mulLlple cholce flnal exam quesLlons durlng Lhe semesLer. 1hls was suggesLed
durlng Lhe A.C.L. reLreaL lasL sprlng buL was noL lmplemenLed because Lhe new
quesLlons were developed durlng Lhe semesLer.
4. ConLlnue and expand Learn SmarL Pomework Lo relnforce chapLer comprehenslon.
3. Lncourage faculLy Lo use common exam resulLs from Lhe fall semesLer Lo emphaslze Lhe
lssues ralsed ln quesLlons 2, 3, 8, 9, 12, 13, and 17.
14
Append|x
#, TBB W69O=4;2 )9=P
1. The separate entity assumption means:
A. a company's financial statements reflect only the business activities of that company.
B. each separate owner's finances must be revealed in the financial statements.
C. each separate entity that has a claim on a company's assets must be shown in the financial
statements.
D. if the business is a sole proprietorship, the owners' personal activities are included in the
company's financial statements.
2. A company's balance sheet contained the following information:

Assume Notes Payable is the only other item on the balance sheet. Notes Payable must equal
A. $200,000.
B. $8,000.
C. $72,000.
D. $344,000.
3. If Smith Company had $12 million in revenue and net income of $3 million then its:
A. expenses must have been $15 million.
B. expenses must have been $9 million.
C. assets must have been $12 million.
D. assets must have been $3 million.

4. Which of the following are the three basic elements of the balance sheet?
A. assets, liabilities, and retained earnings.
B. assets, liabilities, and contributed capital.
C. assets, liabilities, and revenues.
D. assets, liabilities, and stockholders' equity.
5. If a company borrows money from a bank and signs an agreement to repay the loan several
years from now, in which account would the company report the amount borrowed?
A. Contributed Capital.
B. Accounts Payable.
C. Notes Payable.
D. Bonds Payable.
6. Pampered Puppies, Inc., uses $10,000 in cash to pay $10,000 on Accounts Payable. This
would result in a:
A. $10,000 credit to Cash and a $10,000 credit to Accounts Payable.
B. $10,000 debit to Cash and a $10,000 debit to Accounts Payable.
C. $10,000 credit to Cash and a $10,000 debit to Accounts Payable.
D. $10,000 debit to Cash and a $10,000 credit to Accounts Payable.
15
7. Which of the following scenarios could explain the journal entry below?
A. The company buys $10,000 of equipment for $4,000 in cash and $6,000 on credit.
B. The company receives $4,000 in cash and $6,000 in notes payable for selling 10,000 of
equipment.
C. The company buys $10,000 of equipment, for $4,000 cash and a promise to cancel $6,000 of
debt owed to it.
D. The company sells $10,000 of equipment, for $4,000 in cash and pays off $6,000 it owes on
the equipment.
8. Which of the following would a company be most likely to overstate if the company was
trying to mislead (i.e., look better to) potential external investors or creditors?
A. Accounts Receivable.
B. Notes Payable.
C. Salaries Expense.
D. Accounts Payable.
ABC Company reported the following in its recent balance sheet:

Accounts payable $ 19,000
Accounts receivable $ 81,000
Cash $ 73,000
Income tax payable $ 3,000
Inventories $ 25,000
Long-term liabilities $ 2,000
Property and equipment $ 54,000
Stockholders' equity $ 202,000
Supplies $ 5,000
Wages payable $ 12,000
9. What is the amount of Total Assets on the Balance Sheet?
A. $238,000
B. $440,000
C. $250,000
D. $233,000
10. What is the amount of Total Liabilities on the Balance Sheet?
A. $238,000
B. $36,000
C. $41,000
D. $115,000
16
11. During November 2010, Butler Inc., performs consulting services. The client does not pay
Butler until January 2011.
A. Using the accrual basis of accounting, the revenue is reported in January 2011.
B. Using the cash basis of accounting, the revenue is reported in November 2010.
C. Using the accrual basis of accounting, the revenue is reported in November 2010.
D. Using the accrual basis of accounting, the revenue is reported when Butler's expenses are
paid.
12. The Great Grass Company mows 100 lawns a week during June and is paid in July by those
customers. The company uses the accrual basis of accounting. How will these events affect
the company's financial statements?
A. The income statement shows the effects of the transactions in June.
B. The income statement shows the effects of the transactions in July.
C. The balance sheet shows no effect from the transactions in June.
D. The transactions have no effect on the balance sheet.
13. The Dudley Company receives $10,000 in advance in May for work to be performed in
June. In May, the company should:
A. Debit Cash $10,000 and credit Service Revenue $10,000.
B. Debit Cash $10,000 and credit Unearned Revenue $10,000.
C. Debit Cash $10,000 and credit Accounts Payable $10,000.
D. Debit Accounts Payable $10,000 and credit Cash $10,000.
14. The Great Grass Company received a bill for $1,200 for running newspaper ads during the
last two weeks of July; the bill will be paid on August 1. Advertising expense should be:
A. credited for $1,200 in July.
B. credited for $1,200 in August.
C. debited for $1,200 in July.
D. debited for $1,200 in August.
15. Which of the following accounts would appear on the Income Statement?
A. Accounts receivable
B. Unearned revenue
C. Service revenue
D. Accounts payable
16. Under the accrual basis of accounting, if an expense has been incurred but will be paid later,
then:
A. nothing is recorded on the financial statements.
B. a liability account is created or increased and an expense is recorded.
C. an asset account is decreased or eliminated and an expense is recorded.
D. a revenue and an expense are recorded.
17. At the end of the month, the adjusting journal entry to record the use of supplies would
include:
A. A debit to supplies and a credit to expenses.
B. A credit to supplies and a debit to expenses.
C. A debit to supplies and a credit to revenue.
D. A credit to supplies and a debit to cash.
17
18. When the future benefits of existing assets are used up in the ordinary course of business:
A. an expense is recorded.
B. a loss is recorded.
C. a credit to a liability is recorded.
D. a debit to assets is recorded.
19. On the balance sheet, accumulated depreciation is:
A. added to property and equipment.
B. subtracted from property and equipment.
C. added to total liabilities.
D. subtracted from total liabilities.
20. At the beginning of the year, net income should be equal to:
A. the ending net income from the previous year.
B. the ending net income from the previous year before income tax expense.
C. the ending retained earnings from the previous year.
D. zero.
21. All other things equal, in which of the following cases would an analyst rank the company
most favorably?
A. The company has the highest debt-to-assets ratio in the industry as well as the highest profit
margin ratio and asset turnover ratio.
B. The company has the highest debt-to-assets ratio in the industry as well as the highest profit
margin ratio while its asset turnover ratio is the lowest.
C. The company has the lowest debt-to-assets ratio in the industry as well as the lowest asset
turnover ratio while its profit margin ratio is the highest.
D. The company has the lowest debt-to-assets ratio in the industry as well as the highest profit
margin ratio and highest asset turnover ratio.
22. A company files a Form 10-K with the SEC to submit its:
A. quarterly report.
B. annual report.
C. press releases.
D. report of current events of financial importance.
23. Internal controls are concerned with:
A. only manual systems of accounting.
B. the extent of government regulations.
C. protecting against theft of assets and enhancing the reliability of accounting information.
D. preparing income tax returns.
24. The internal control principle related to separating employees' duties is called:
A. duplication of responsibility.
B. independent internal verification.
C. segregation of duties.
D. rotation of duties.
18
25. Your company writes a check for $857. Which of the following describes how this
transaction should be accounted for?
A. You add $857 to your recorded cash balance and the bank deducts $857 from your checking
account balance.
B. You deduct $857 from your recorded cash balance and the bank deducts $857 from your
checking account balance.
C. You add $857 to your recorded cash balance and the bank adds $857 to your checking
account balance.
D. You deduct $857 from your recorded cash balance and the bank adds $857 to your checking
account balance.
26. Deposits in transit:
A. have been recorded by the company but not yet by the bank.
B. have been recorded by the bank but not yet by the company.
C. have not been recorded by the bank or the company.
D. are customers' checks that have not yet been received by the company.
27. On a bank reconciliation, the amount of an unrecorded bank service charge is
A. added to the bank balance of cash.
B. added to the company's balance of cash.
C. deducted from the bank balance of cash.
D. deducted from the company's balance of cash.
28. When goods are sold to a customer with credit terms of 2/15, n/30, the customer will:
A. receive a 15% discount if they pay within 2 days.
B. receive a 2% discount if they pay 15% of the amount due within 30 days.
C. receive a 15% discount if they pay within 30 days.
D. receive a 2% discount if they pay within 15 days.
29. Which of the following would be in the raw materials inventory of a company making
cheese?
A. Milk and cream used to make the cheese.
B. Cheese that has been processed but is curing (i.e., ripening or maturing) before being ready to
sell.
C. Cured (i.e., ripened or matured) cheese that is waiting to be shipped to retailers.
D. Partially processed cheese.
30. Which of the following would be in the work-in-process inventory of a company making
cheese?
A. Milk and cream used to make the cheese.
B. Cheese that has been processed but is curing (i.e., ripening or maturing) before being ready to
sell.
C. Cured (i.e., ripened or matured) cheese that is waiting to be shipped to retailers.
D. Cured (i.e., ripened or matured) cheese that has been sold to retailers
19

Moore Company uses a periodic inventory system and its inventory records for the period
contain the following information:

31. What is the amount of cost of goods available for sale?
A. $11,250
B. $17,500
C. $5,000
D. $13,750
32. The AD Jones Corporation has no beginning inventory. It buys 300 units of merchandise in
January at $5 each. It buys 500 units in February at $4 each and it buys 200 units in March at
$6 each. AD Jones sells 150 units during this quarter. What is the cost of goods sold under
the FIFO method?
A. $600
B. $934
C. $750
D. $900
33. The LIFO inventory costing method assumes that the cost of the units most recently
purchased is:
A. the last to be assigned to cost of goods sold.
B. the first to be assigned to ending inventory.
C. the first to be assigned to cost of goods sold.
D. not assigned to cost of goods sold or ending inventory.
34. If a firm's beginning inventory is $35,000, goods purchased during the period cost $120,000,
and the cost of goods sold for the period is $140,000, what is the amount of the ending
inventory?
A. $45,000
B. $20,000
C. $25,000
D. $15,000
35. Assuming adjusting journal entries are made monthly, the Great Grass Corporation provides
$6,000 worth of lawn care on account during the month. Experience suggests that about 2%
of net credit sales will not be collected. To record the potential bad debts, the Great
Grass Corporation would:
A. debit Accounts Receivable and credit Allowance for Doubtful Accounts for $120.
B. debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $120.
C. debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $120.
D. debit Bad Debt Expense and credit Accounts Receivable for $120.

20
36. Your company uses the percentage of credit sales method for calculating bad debt expense.
If your company has $216,000 in total sales, of which $178,000 are on credit, and its
historical bad debt loss is 6% of credit sales, bad debt expense is:
A. $12,960.
B. $10,680.
C. $38,000.
D. $11,000
37. On the balance sheet, the allowance for doubtful accounts:
A. is included in current liabilities.
B. increases the reported net value of accounts receivable.
C. appears under the heading "Other Assets."
D. is deducted from accounts receivable.
38. The amount of uncollectible accounts at the end of the year is estimated to be $25,000, using
the aging of accounts receivable method. The balance in the Allowance of Doubtful
Accounts account is an $8,000 credit before adjustment. What should the account balance in
the Allowance for Doubtful Accounts be after adjustment?
A. $8,000.
B. $17,000.
C. $25,000.
D. $33,000.
39. On July 1, 2011, Sanka Inc. signed a two-year $8,000 note receivable with 9 percent interest.
At its due date, July 1, 2013, the principal and interest will be received in full. Interest
revenue should be reported on Sanka's income statement for the year ended December 31,
2011, (i.e., from July to December) in the amount of:
A. $1,440.
B. $720.
C. $420.
D. $360.
40. Your company buys a computer system from Dell for $3 million and paysDell $200,000 to
install the computer system. Your company should record:
A. $3 million in equipment and $200,000 in expenses.
B. $3.2 million in expenses.
C. $2.8 million in equipment and the rest in expenses.
D. $3.2 million in equipment.
41. Ordinary repairs and maintenance always:
A. are part of the asset cost of equipment and facilities.
B. are recorded as expenses.
C. are recorded as liabilities.
D. improve the asset beyond the current accounting period.
21
42. Which of the following is not an amount that is needed to calculate straight-line
depreciation?
A. The cost of the asset.
B. An estimate of the asset's useful economic life to the company.
C. The estimated amount that the company will get when it disposes of the asset.
D. The cost the company will be required to incur to replace the asset.
43. A company expects to use equipment that cost $48,000 for ten years and then sell it for
$6,000. Using the straight-line method, the company should report depreciation for the
equipment of:
A. $4,200 per year.
B. $8,400 per year.
C. $4,800 per year.
D. $9,600 per year.
44. On October 1, you borrow $200,000 in order to build a new facility. The loan is for 10 years,
at 7% interest, and semiannual interest payments are due each April and October. The journal
entry to record the issuance of the promissory note should:
A. debit Notes Payable for $200,000, debit Interest Expense for $14,000, credit Cash for
$200,000, and credit Interest Payable for $14,000.
B. debit Accrued Interest for $14,000 and credit Cash for $14,000.
C. debit Cash for $200,000 and credit Notes Payable for $200,000.
D. debit Cash for $200,000, debit Interest Expense for $14,000, credit Notes Payable for
$200,000, and credit Interest Payable $14,000.
45. A one-year, $15,000, 12 percent note is signed on April 1, 2012. If the note is repaid on
September 1, 2012, how much interest expense is incurred?
A. $1,800
B. $900
C. $750
D. $600
46. Obligations due to be paid within one year or the company's operating cycle, which ever is
longer, are:
A. current assets
B. current liabilities
C. earned revenues
D. non-current liabilities
47. A corporate charter specifies that the company may sell up to 20 million shares of stock. The
company sells 12 million shares to investors and later buys back 3 million shares. The
number of authorized shares after these transactions are accounted for is:
A. 12 million shares.
B. 20 million shares.
C. 9 million shares.
D. 17 million shares.
22
48. A corporate charter specifies that the company may sell up to 20 million shares of stock. The
company sells 12 million shares to investors and later buys back 3 million shares. The current
number of outstanding shares after these transactions have been accounted for is:
A. 8 million shares.
B. 20 million shares.
C. 10 million shares.
D. 9 million shares.
49. Cash and cash equivalents include:
A. assets that have stable long-term value.
B. assets that are short-term, highly liquid investments, and are purchased within three months
of maturity.
C. assets that consistently grow in value over the long run.
D. assets that are expected to be used up within a year.
50. Which of the following would be included in cash flows from operating activities?
A. Cash proceeds from sales.
B. Cash received from an issuance of bonds.
C. Dividends paid to stockholders.
D. Cash used for purchases of equipment.

Assessment kubr|c: Learn|ng ob[ect|ve 1.2 - AC 211
23
AC 212 Common uest|ons
1. Whlch of Lhe followlng ob[ecLlves ls noL assoclaLed wlLh managerlal accounLlng?
a. prepares externa| reports for |nvestors, cred|tors, government agenc|es, and other outs|de
users.
b. provldes lnformaLlon for cosLlng of servlces, producLs, and oLher ob[ecLs of lnLeresL Lo
managemenL.
c. provldes lnformaLlon for plannlng, conLrolllng, and declslon-maklng.
d. provldes lnformaLlon for declslon-maklng.
2. LasL monLh, when 10,000 unlLs of a producL were manufacLured, LoLal varlable cosLs were $300,000,
LoLal flxed cosLs were $300,000, and Lhe cosL per unlL was $60.00. lf 10,300 unlLs are manufacLured nexL
monLh,
a. LoLal varlable cosL wlll remaln unchanged.
b. LoLal flxed cosLs wlll lncrease.
c. varlable cosL per unlL wlll lncrease.
d. f|xed cost per un|t w||| decrease.
3. 1he followlng cosL daLa are avallable for LmerlLus Company:
MonLh 1oLal LlecLrlclLy CosL ulrecL Labor Pours
!anuary $31,000 4,000
lebruary 24,000 2,000
March 27,000 3,300
Aprll 39,000 6,300
May 43,000 9,000
!une 48,000 8,000
lf Lhe hlgh-low meLhod ls used, Lhe amounL of LoLal flxed cosLs wlll be:
a. $10,000.
b. $16,000.
c. $17,143.
d. 518,000.
4. 8ora Company uses a predeLermlned overhead raLe based on dlrecL labor hours Lo apply
manufacLurlng overhead Lo [obs. AL Lhe beglnnlng of Lhe year, lLs esLlmaLed overhead was $200,000 and
lLs esLlmaLed dlrecL labor hours were 20,000. lLs acLual flgures for Lhe year were $220,000 and 21,000
dlrecL labor hours. lLs yearly cosL records show:
a. overapplled overhead of $3,000.
b. underapplled overhead of $3,000.
c. underapp||ed overhead of 510,000.
d. overapplled overhead of $10,000.
24

3. 1he followlng daLa have been recorded for recenLly compleLed !ob 674 on lLs [ob cosL sheeL. ulrecL
maLerlals cosL was $2,039. A LoLal of 32 dlrecL labor-hours and 173 machlne-hours were worked on Lhe
[ob. 1he dlrecL labor wage raLe ls $14 per labor-hour. 1he company applles manufacLurlng overhead on
Lhe basls of machlne-hours. 1he predeLermlned overhead raLe ls $13 per machlne-hour. 1he LoLal cosL
for Lhe [ob on lLs [ob cosL sheeL ls:
a. $2,068.
b. $2,487.
c. $2,967.
d. 5S,112.
6. 1aylor lnc. ls a manufacLurlng company whose cosL of goods manufacLured lasL monLh LoLaled
$88,000. 1he company's beglnnlng flnlshed goods lnvenLory was $13,000 and lLs endlng flnlshed goods
lnvenLory was $13,000. WhaL was Lhe company's cosL of goods sold for Lhe monLh?
a. $86,000
b. $88,000
c. 590,000
d. $116,000

7. uslng only a volume-based overhead raLe such as dlrecL labor hours Lo asslgn overhead cosLs LhaL
resulL from several acLlvlLles or cosL drlvers can cause:
a. lmproved efflclency.
b. producL dlverslLy.
c. acLlvlLy sharlng.
d. d|storted product costs.
8. eLlLLe CorporaLlon has provlded Lhe followlng daLa from lLs acLlvlLy-based cosLlng sysLem:
AcLlvlLy CosL ool 1oLal CosL 1oLal AcLlvlLy
Assembly $62,000 3,100 Machlne Pours
Crder rocesslng $3,900 130 Crders
lnspecLlon $10,200 170 lnspecLlon Pours
uaLa concernlng Lhe company's producL k10 appear below:
Annual unlL producLlon and sales 400
Annual machlne hours 700
Annual number of orders 30
Annual lnspecLlon hours 30

Accordlng Lo Lhe acLlvlLy-based cosLlng sysLem, Lhe manufacLurlng overhead cosL per unlL of producL
k10 ls:

a. $22.38 per unlL.
b. 541.7S per un|t.
c. $60.00 per unlL.
d. $110.00 per unlL.

25
use Lhe followlng cosL-volume-proflL graph Lo answer quesLlon 9:

H

G

A
|
|
|
|
B |

E

D

9. 1he verLlcal llne segmenL LA above represenLs Lhe:
a. breakeven polnL.
b. amounL of varlable cosL.
c. amount of var|ab|e cost at the breakeven po|nt.
d. amounL of LoLal cosL.
10. Assume LhaL sales revenue ls $10 per unlL, varlable cosL ls $7 per unlL, flxed cosLs are $3,000, and
1,000 unlLs are sold. Whlch of Lhe sLaLemenLs below ls lncorrecL?
a. 1he conLrlbuLlon margln per unlL ls $3.00.
b. 1he conLrlbuLlon margln raLlo ls 30.
c. 1he gross marg|n per un|t |s 53.00.
d. 1he break-even volume ln sales dollars ls $10,000.
11. Colon Company sells lLs slngle producL for $100 per unlL. lf varlable cosLs are $80 per unlL, flxed
cosLs amounL Lo $130,000, and deslred LargeL proflL ls $30,000, whaL volume ln unlLs wlll achleve lLs
deslred proflL?
a. 2,000
b. 7,300
c. 10,000 (51S0,000 + 5S0,000)](5100 - 580)
d. $1,000,000
12. 1he break-even polnL ln unlL sales lncreases when varlable cosLs:
a. |ncrease and the se|||ng pr|ce rema|ns unchanged.
b. decrease and Lhe selllng prlce remalns unchanged.
c. decrease and Lhe selllng prlce lncreases.
d. remaln unchanged and Lhe selllng prlce lncreases.
26

13. 8uLLeco CorporaLlon has provlded Lhe followlng cosL daLa for lasL year when 100,000 unlLs were
produced and sold:

8aw maLerlals $200,000
ulrecL labor $100,000
ManufacLurlng overhead $200,000
Selllng and admlnlsLraLlve expense $130,000

All cosLs are varlable excepL for $100,000 of manufacLurlng overhead and $100,000 of selllng and
admlnlsLraLlve expense. 1here are no beglnnlng or endlng lnvenLorles. lf Lhe selllng prlce ls $10 per
unlL, Lhe neL operaLlng lncome from produclng and selllng 110,000 unlLs under varlable cosLlng ls:
a. $383,000.
b. 540S,000.
c. $430,000.
d. $360,000.
14. Whlch of Lhe followlng ls not a beneflL of budgeLlng?
a. It reduces the need for track|ng actua| cost act|v|ty.
b. lL seLs benchmarks for evaluaLlon performance.
c. lL uncovers poLenLlal boLLlenecks.
d. lL formallzes a manager's plannlng efforLs.
13. resLwlch Company has budgeLed producLlon for nexL year as follows:
_______________CuarLer__________
llrsL Second 1hlrd ___ lourLh
roducLlon ln unlLs 60,000 80,000 90,000 70,000

1wo pounds of maLerlal A are requlred for each unlL produced. 1he company has a pollcy of
malnLalnlng a sLock of maLerlal A on hand aL Lhe end of each quarLer equal Lo 23 of Lhe nexL
quarLer's producLlon needs for maLerlal A. A LoLal of 30,000 pounds of maLerlal A are on hand Lo
sLarL Lhe year. 8udgeLed purchases of maLerlal A for Lhe second quarLer would be:
a. 82,300 pounds.
b. 130,000 pounds.
c. 160,000 pounds.
d. 16S,000 pounds.
16. Cummer PosplLal bases lLs budgeLs on paLlenL-vlslLs. 1he hosplLal's sLaLlc plannlng budgeL for
lebruary appears below:
8udgeLed number of paLlenL-vlslLs 9,900
8udgeLed varlable overhead cosLs:
Supplles ([$6.60 per paLlenL-vlslL) $63,340
Laundry ([$6.30 per paLlenL-vlslL 64,330
1oLal varlable overhead cosL 129,690
8udgeLed flxed overhead cosLs:
Wages and salarles 83,140
Cccupancy cosLs 76,230
27
1oLal flxed overhead cosL $161,370
1oLal budgeLed overhead cosL $291,060
1he LoLal overhead cosL aL an acLlvlLy level of 10,800 paLlenL-vlslLs per monLh should be:
a. $291,060.
b. 5302,8S0.
c. $303,810.
d. $317,320.
17. Average operaLlng asseLs are $110,000 and neL operaLlng lncome ls $23,100. 1he company lnvesLs
$23,000 ln new asseLs for a pro[ecL LhaL wlll lncrease neL operaLlng lncome by $4,730. WhaL ls Lhe
reLurn on lnvesLmenL (8Cl) of Lhe new pro[ecL?
18.3
19.0
20.0
21.0
18. 8esldual lncome ls a beLLer measure of Lhe performance of an lnvesLmenL cenLer manager Lhan
reLurn on lnvesLmenL because:
a. Lhe problems assoclaLed wlLh measurlng Lhe asseL base are ellmlnaLed.
b. des|rab|e |nvestment dec|s|ons w||| not be re[ected by d|v|s|ons that a|ready have a h|gh
kCI.
c. only Lhe gross book value of asseLs needs Lo be calculaLed.
d. reLurns do noL lncrease as asseLs are depreclaLed.
19. A general rule ln relevanL cosL analysls ls:
a. varlable cosLs are always relevanL.
b. flxed cosLs are always lrrelevanL.
c. on|y future costs that d|ffer between a|ternat|ves are re|evant.
d. depreclaLlon ls always relevanL.
20. A sLudy has been conducLed Lo deLermlne lf roducL A should be dropped. Sales of Lhe producL
LoLal $200,000 per year, LoLal varlable cosLs are $140,000 per year, and LoLal flxed cosLs allocaLed Lo
Lhe producL are $90,000 per year. 1he company esLlmaLes LhaL $40,000 of Lhese flxed expenses wlll
conLlnue even lf Lhe producL ls dropped. 1hese daLa lndlcaLe LhaL lf roducL A ls dropped, Lhe
company's overall neL operaLlng lncome wlll:
a. decrease by $20,000 per year.
b. decrease by 510,000 per year.
c. lncrease by $20,000 per year.
d. lncrease by $30,000 per year.

Assessment kubr|c: Learn|ng ob[ect|ve 1.2 - AC 212
28
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
4) Apply spreadsheet skills AC212 152 6 63 (41%) 68 (45%) 21 (14%)
SLudenLs were asslgned a budgeLlng pro[ecL requlrlng each sLudenL Lo bulld a compleLe seL of
masLer budgeL schedules for four quarLers lncludlng annual LoLals for a manufacLurlng
company. SLudenLs demonsLraLed Lhelr spreadsheeL skllls by developlng approprlaLe cell
formulae, uslng cell referenclng Lo llnk budgeL schedules Lo avold dupllcaLe enLry of daLa and
provlde auLomaLlc updaLlng for changes ln assumpLlons, and by modlfylng dlsplay seLLlngs for
readablllLy and professlonal appearance.
up from 82 ln sprlng 2012 and 84 ln fall 2011 and 83 durlng Lhe sprlng 2011 semesLer. 1he
resulLs exceeded Lhe 80 goal. 1he proporLlon of sLudenLs above accepLable was 41, down
from 47 ln sprlng 2012 and 44 ln fall 2011.
1he School of 8uslness has lnsLlLuLed a SA (sLudenL professlonal advancemenL program) LhaL
lncludes some sesslons on baslc Lxcel concepLs and Lechnlques early ln Lhe semesLer and more
advanced Loplcs laLer ln Lhe semesLer. 1he School of 8uslness has also lnsLlLuLed weekly Lxcel
LuLorlng Lhrough Lhe uean's offlce. 8aLher Lhan requlrlng an addlLlonal Lxcel LexL and
asslgnmenLs, we declded Lo use early Lxcel asslgnmenLs Lo ldenLlfy sLudenLs needlng exLra help
ln Lxcel, and Lo dlrecL Lhose sLudenLs Lo sources for Lxcel help, lncludlng Lhe supplemenLal LexL,
on-llne help, or workshops. Cur resulLs have been sLable slnce we made Lhe change. We
should Lrack Lhe exLenL Lo whlch sLudenLs acLually Lake advanLage of Lhe Spa sesslons.
We need Lo conLlnue Lo monlLor Lhe performance of Lhe weaker sLudenLs, and deLermlne
wheLher or noL Lhe sLudenLs ldenLlfled as weak ln Lxcel early ln Lhe semesLer are Laklng
advanLage of Lhe workshops offered Lhrough Lhe SA program.
We have declded agalnsL uslng a comprehenslve buslness case for Lhe AC 212 assessmenL, buL
we are explorlng wheLher one or more smaller Lxcel asslgnmenLs may be beLLer Lhan Lhe
budgeLlng pro[ecL Lo assess Lxcel skllls. A change ln Lhe assessmenL Lool would necesslLaLe a
change ln Lhe assessmenL rubrlc. uue Lo Lhe volume of changes ln oLher areas of Lhe course,
we declded noL Lo make any changes ln Lhls assessmenL durlng Lhe 2012-13 academlc year. Cur
29
currenL focus ls lmprovlng resulLs on learnlng ouLcome 1.2.
AcLlon lLems:
1. ldenLlfy weak performers and see lf Lhey were ldenLlfled as weak Lxcel users early ln Lhe
semesLer, and lf so, dld Lhey Lake advanLage of Lhe Spa workshops and LuLorlng or avall
Lhemselves of oLher help bulldlng Lxcel skllls ouLslde class.

30
Learning Outcomes
Course(s)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
5) Solve problems using
managerial models
AC212 152 6 73 (48%) 60 (39%) 19 (13%)
1he same budgeLlng pro[ecL used Lo assess spreadsheeL skllls ln learnlng ouLcome 4 allows
sLudenLs Lo demonsLraLe Lhelr ablllLy Lo solve problems uslng managerlal models. ln Lhls case,
Lhe sLudenLs bulld a resource acqulslLlon and consumpLlon (masLer budgeL) model ln Lxcel,
modellng Lhe lnLerrelaLlonshlps beLween Lhe flrm's acLlvlLles Lo pro[ecL resource avallablllLy and
resource needs for a year of acLlvlLy. SLudenLs' ablllLy Lo model Lhe flrm's acLlvlLy was assessed
uslng a rubrlc.
above Lhe 80 goal buL sllghLly lower Lhan Lhe 91 ln sprlng 2012 and 90 ln fall 2011. 1he
proporLlon of sLudenLs performlng aL an above accepLable level was 48, down conslderably
from 39 ln sprlng 2012, buL comparable Lo Lhe 30 raLe for fall 2011.
1he proporLlon of sLudenLs performlng below accepLable remalns low. 1he swlLch Lo Lhe new
LexL may have helped sLudenLs consLrucL Lables more accuraLely and more conslsLenL wlLh Lhe
budgeLlng model.
SLudenL performance was very dlsappolnLlng however on Lhe applled budgeLlng quesLlon on
Lhe common flnal ln fall 2012. Many sLudenLs seem Lo have dlfflculLy Lransferrlng whaL Lhey
learn uslng Lhe spreadsheeL model Lo a manual calculaLlon.
Some sLudenLs have dlfflculLy deallng wlLh Lhe dlfferences caused by physlcal lnvenLory ln a
producLlon seLLlng. lor many Lhls ls Lhelr flrsL exposure Lo accounLlng for manufacLurlng raLher
Lhan a merchandlslng or servlce envlronmenL. 1he LexLbook LhaL we used ln Lhe fall dld noL go
lnLo as much deLall on manufacLurlng lncome sLaLemenLs as Lhe prevlous one.
Whlle we anLlclpaLe conLlnulng Lo asslgn a comprehenslve budgeLlng problem, we are
conslderlng movlng Lo mlnl-cases requlrlng Lhe appllcaLlon of dlfferenL managerlal models Lo
assess Lhls learnlng ouLcome. 1haL efforL has been posLponed Lo Lhe 2013-14 academlc year.
31

We wanLed Lo see lf Lhe dlfferenL presenLaLlon of Lhe budgeLlng model ln Lhe new LexLbook,
coupled wlLh Lhe use of Lhe (ConnecL) onllne homework manager and LearnSmarL would have
an lmpacL on sLudenLs' ablllLy Lo apply budgeLlng concepLs boLh wlLhln and ouLslde Lhe
spreadsheeL model. 1he performance on Lhe budgeLlng pro[ecL remalns sLable aL a hlgh level of
above accepLable and accepLable. 1he fall 2012 resulLs on Lhe common flnal quesLlon were
low.
1hls learnlng ouLcome ls really a subseL of Lhe broader learnlng ouLcome 3 and Lhe ouLcome
could be dropped or assessed uslng a smaller asslgnmenL on applylng models Lo solve problems
- uslng Lhe Cv model, for example. We wlll explore uslng mlnl-cases lnvolvlng oLher
managerlal models Lo evaluaLe Lhls learnlng ouLcome.
AcLlon lLems:
1. ldenLlfy exerclses Lo help sLudenLs beLLer relaLe Lo manufacLurlng/producLlon seLLlngs.
2. rovlde more pracLlce on applylng budgeLlng concepLs ouLslde of Lhe budgeLlng pro[ecL.
3. LvaluaLe use of problem solvlng mlnl-cases as an assessmenL Lool for Lhe modellng-
based problem solvlng assessmenL.
4. uevoLe more classroom Llme Lo ManufacLurlng lncome SLaLemenLs.

32
Append|x
Budgeting Project Fall 2012

AC 212 Introduction to Managerial Accounting

Hard copy due November 29, 2012 at the start of class
Project must also be emailed to shakun@ccsu.edu by the same time
Do not use classroom printer!
No late submissions will be accepted.

Student Name:
________________________________________________________________________

I understand that this assignment is open book and open notes and is to be completed
individually. I certify that I have not used the assistance of any other individual(s) in any form
(verbally, written notes specific to this assignment, email, IM, cell phone etc.) other than my
Professor. I have read the Academic Honesty Policy included in the AC 212 syllabus and have
completed this assignment in accordance with University Policies and the policies noted above.

Student Signature
______________________________________________________________________

Your name should be typed on all sheets turned in for evaluation. Staple all budget work
sheets to this cover sheet.

After I review the Master Budget and Pro Forma Financial Statements, I may require changes if
new information is available. Please design the Master Budget and Pro Forma Financial
Statements to allow changes to be incorporated easily and quickly with the formulas you will be
using. Also, as this will be distributed to various levels of management within the organization,
ensure that proper business written communication and Excel formatting is utilized (print in
landscape using dollar signs, commas, underlining, proper lining-up of amounts, correct
spelling, etc.)

Additional information pertaining to these tasks follows in the attached memo.
33
uA1L: CcLober 22, 2010
1C: CCSu ConsulLlng
l8CM: uuncan Lagleson, resldenL, Shape ShlfLer Masks
Su8!LC1: MasLer 8udgeL for Lhe flscal year november 1, 2010 - CcLober 31, 2011
----------------------------------------------------------------------------------------------------------------------------------
Cur conLroller, Lauren Mc8rlde, has mysLerlously dlsappeared whlle on a Lrlp lnvesLlgaLlng new leaLher
suppllers ln ArgenLlna. We need Lhe Anlmal ulvlslon's MasLer 8udgeL for Lhe flscal year ended CcLober
31, 2011 for our corporaLe sLraLeglc plannlng process, and we cannoL walL for Lauren's re-appearance.
We would llke you Lo prepare Lhe Anlmal ulvlslon's MasLer 8udgeL for Lhe flscal year ended CcLober 31,
2011.

1he dellverables are as follows:

1. Sales budgeL.
2. roducLlon budgeL.
3. ulrecL maLerlals purchases budgeL.
4. ulrecL labor budgeL.
3. ManufacLurlng overhead budgeL.
6. A schedule calculaLlng Lhe expecLed value of Lhe flnlshed goods lnvenLory as of CcLober 31,
2011.*
7. 8udgeLed sLaLemenL of cosL of goods manufacLured and sold for Lhe flscal year ended CcLober
31, 2011.*
8. Selllng and admlnlsLraLlve expense budgeL.
9. 8udgeLed lncome sLaLemenL for Lhe flscal year ended CcLober 31, 2011.*
10. An accounLs recelvable aglng schedule (schedule of collecLlons from accounLs recelvable).
11. Schedule of cash paymenLs on accounLs payable
12. Cash budgeL.

All Lhe MasLer 8udgeL schedules excepL Lhose marked wlLh an asLerlsk for Lhe Anlmal ulvlslon should
lnclude a column for each quarLer and a LoLal column for Lhe flscal year. We need only annual LoLals for
Lhe budgeLed flnanclal sLaLemenLs (schedules 7 and 9) and we need only Lhe flscal year-end amounL for
Lhe value of flnlshed goods lnvenLory (schedule 6).

1he hard coples of Lhese budgeL schedules should be dellvered by november 29, 2012. ?ou can prlnL
more han one schedule per page, buL do not have a page break ln Lhe mlddle of a budgeL schedule. l
llke Lo be able Lo vlew an enLlre budgeL schedule wlLhouL fllpplng back and forLh beLween pages. lease
also use a Lype fonL of beLween 10-12 polnLs for prlnLlng. We also need you Lo send us Lhe Lxcel
spreadsheeL you use Lo creaLe Lhe budgeL so we can use Lhe spreadsheeL Lo explore Lhe effecL of
changes ln our assumpLlons abouL prlces and volumes of acLlvlLy. We need LhaL spreadsheeL flle by
november 29, 2012 as well.

l've aLLached a brlef descrlpLlon of Lhe Anlmal ulvlslon Lo Lhe budgeL daLa Lauren gave me before she
lefL for ArgenLlna. We eagerly awalL your resulLs.

Slncerely,
Duncan Eagleson
uuncan Lagleson, resldenL
34
Leather was first used extensively for mask making in the early 16th century, when such masks were
created for the performers of the Commedia dell' Arte.
1
Commedia dell Arte, was a form of
improvisational comedic theater that began in Italy. It used ten stock characters, with a mask representing
each character. A basic theme or plot line would be agreed upon, and the players would improvise in the
context of their characters.
2

In the late 1970s, the rising popularity of Renaissance festivals and re-enactment groups like the Society
for Creative Anachronism brought a resurgence of interest ancient crafts. There are now quite a few who
sculpt leather masks.
Modern leather maskmakers use dyes and paints of modern
manufacture, but the basic technique remains essentially the same as it
was in the Renaissance. Vegetable tanned leather is wetted (making it
pliable and stretchable), and shaped over a wooden or plaster base,
sometimes using tools to achieve particular shapes, or carve designs
into the surface of the leather. Most of the actual shaping and
sculpting of the leather is done by hand. Once the mask is shaped, a
stiffening agent is applied, and the mask is sealed, and primed.
Since moisture is what allows the leather to be shaped, the finished
mask must be protected from re-wetting, lest it lose it's shape.
Historically this was done with pitch, wax, or a combination of wax
and oil. At Shape Shifter, an acrylic sealer is applied, and then the
mask is painted using acrylic paints. A final coat of acrylic varnish is
added to protect the painted surface.
The Animal Division of Shape Shifter Masks produces masks inspired
by animals (mostly mammal and bird heads, but also butterflies. The
Wolf and Bald Eagle masks to the left are two examples. Mask sales
are strongest before Halloween, but smaller sales spikes occur before
Christmas and Mardi Gras, and the Renaissance fairs generate some
sales, especially during the summer. During 2010-11 fiscal year, the
average selling price for Animal masks is expected to be $160 per mask. The Animal Division forecasts
the following number mask sales.
Mask sales 5,500 4,200 2,200 10,800
The collection pattern for Accounts Receivable is as follows:
o 70 percent of all sales are collected within the quarter in which they are sold
o 30 percent of all sales are collected in the following quarter.
o There are no bad debts/uncollectibles.

Due to higher than expected demand this year, the Animal Division expects to have no finished masks in
inventory on November 1, 2010, the beginning of the first quarter of the new fiscal year. To avoid having
that problem in the coming fiscal year, the Animal Division would like to have the ending inventory of
masks at the end of each of the first three quarters equal to 35% of the budgeted sales for the next
quarter. They would like to have 1,800 finished masks on hand on October 31, 2011.

1
This case is inspired by a real company, Duncan Eaglesons Shape Shifter Masks, in Smithfield Rhode Island. The
masks pictured are among those he has through his web-site. The discussion of mask making also draws material
from his website http://www.maskmaker.com/
2
http://en.wikipedia.org/wiki/Commedia_dellarte
35
Ending FG inventory in masks
as a % of the next quarters
budgeted sales 35% 35% 35% ?
Ending FG inventory in masks ? ? ? 1,800
Each Animal mask requires an average of 1.6 square feet of leather. The Animal Division buys leather for
$11.90 per square foot and they expect the price to remain constant throughout the year. They expect to
have 4,500 square feet of leather on hand as of November 1, 2010, the beginning of the first quarter of the
fiscal year. At the end of each of the first three quarters, the Animal Division would like to have their
direct materials inventory quantity to equal 40 percent of the amount required for the following quarters
planned production. On October 31, 2011, the end of the fiscal year, Animal Division would like to have
5,700 square feet of leather on hand.
Ending DM inventory as a %
of the next quarters
production requirement 40% 40% 40% ?
Ending DM inventory in sq. feet ? ? ? 5,700
The Animal Division buys its leather on account. It pays for 75% of its purchases of direct materials in
the quarter in which they were purchased and 25% in the quarter after they were purchased.
Each Animal mask requires 3.80 hours (228 minutes) of direct labor. Employees engaged in direct labor
will be paid an estimated $21.50 per labor hour. Wages and salaries are paid on the 15
th
and 30
th
of each
month.
Variable manufacturing overhead is estimated to be $7.50 per direct labor hour for the coming fiscal year.
All variable manufacturing overhead expenses are paid for in the quarter incurred.
Fixed manufacturing overhead is estimated to total $26,000 each quarter, with $7,400 out of the total
amount of $26,000 representing depreciation on equipment, molds, and the factory. All other fixed
manufacturing overhead expenses are paid in cash in the quarter they occur. The fixed manufacturing
overhead rate will be computed by dividing the years total fixed manufacturing overhead by the years
budgeted direct labor hours. Round the fixed overhead rate to the nearest penny.
Variable selling and administrative expenses are estimated to be $18.00 per mask sold. Fixed selling and
administrative expenses are expected to total $20,000 each quarter, with $4,500 out of the total amount of
$20,000 representing depreciation on the office space, furniture and equipment. Other than depreciation,
all selling and administrative expenses are paid for in the quarter they occur.
On October 31, 2011 the Animal Division plans to buy new equipment and molds for $20,000. The new
equipment and molds will be acquired at the very end of the year, so it will not be used in production and
sales during the coming year and it will not be depreciated until the following year. The Animal Division
expects to pay 10% down and finance the remaining 90% of the equipment cost with a note payable. No
interest payable will accrue on the equipment note payable until after October 31, 2011.
Animal Division must maintain a positive cash balance. Because it is planning to re-build finished goods
inventory over the course of the year, the Animal Division plans to borrow $200,000 arranging a one-year
bank note on May 1, 2011, the first day of the third quarter. The note will carry an annual interest rate
of 8%, payable in quarterly installments of 2.00% beginning with the end of the third quarter. The
$200,000 principal amount of the one-year note will not be payable until April 30, 2012.
Animal division expects that this borrowing will be sufficient to maintain a positive cash balance. If the
cash budget shows a negative balance for any quarter, Animal Division will have to borrow on its line of
credit in an amount sufficient to bring cash to a positive balance. Borrowing must be in even $1,000
36
increments. To be conservative, assume the borrowing takes place on the first day of the quarter. They
also will have to pay interest on the last day of each quarter of 2.00% of the total amount outstanding on
the line-of-credit note (new borrowing, plus any borrowings from prior quarters not yet repaid). They
must borrow enough to pay this interest payment and maintain a positive cash balance for the month.
Surpluses in the cash budget for any quarter should be used to repay any outstanding line-of-credit notes
in thousand dollar increments until the note is completely paid or a further 1,000 payment will create a
negative cash balance. To be conservative, assume the repayments occur on the last day of each quarter.
So, for example, if Animal had to borrow $20,000 on their line of credit to maintain a positive cash
balance in the second quarter and they had sufficient cash to repay the loan in the third quarter, they
would have to pay interest at a rate of 2.00% in the second quarter (because borrowing is assumed to take
place at the beginning of the quarter) and they would also have to pay interest at a rate of 2.00% on the
$20,000 in the third quarter (because the repayment is assumed to take place at the very end of the
quarter).
As a division of Shape Shifter Masks, the Animal Division does not pay income taxes. All income taxes
are charged to the parent company. Animal Division will pay dividends of $20,000 each quarter to its
corporate parent, Shape Shifter Masks. The dividends must be paid, even if the Animal Division has to
borrow on its line of credit to make the payment
The budgeted balance sheet for the Animal Division on October 31, 2010 (which is the same as the
budgeted balance sheet at the beginning of business November 1, 2010) is presented on the following
page. Shape Shifter Masks owns 100% of the Capital Stock of the Animal Division.
ANIMAL DIVISION SHAPE SHIFTER MASKS
BUDGETED BALANCE SHEET
OCTOBER 31, 2010
ASSETS LIABILITIES & EQUITY
Cash $160,000
Accounts
Payable $75,000
Accounts Receivable 480,000 Notes Payable 0
Raw Material
Inventory 53,550 Capital Stock 1,300,000
Plant and Equipment 1,400,000
Retained
Earnings 718,550

TOTAL ASSETS $2,093,550 TTL LIAB. & SE $2,093,550

37
App|y Spreadsheet Sk|||s

Above acceptab|e: lncludes all of accepLable, glven daLa are enLered once and only once ln
Lhe model and are lncorporaLed by cell reference LhereafLer, all compuLaLlons are bullL lnLo
cell formulae, numbers are allgned and formaLs are approprlaLe.
Acceptab|e: 8udgeL schedules are well consLrucLed buL Lhere are lnsLances where lnlLlal
daLa are re-enLered raLher Lhan llnked Lo prlor schedules, budgeL schedules are mosLly well
presenLed buL Lhere are a few lnsLances where formaLs are lnapproprlaLe or labellng ls
unclear.
8e|ow acceptab|e: SpreadsheeL cells are mosLly Lyped raLher Lhan Lhe budgeLlng model
bullL lnLo Lhe spreadsheeL, mlnlmal cell referenclng and cell formulae, schedules noL well
presenLed wlLh unprofesslonal labellng and formaLLlng.

So|ve rob|ems Us|ng Manager|a| Mode|s

#H;59 7QQ9:=7H89? Incluues all of acceptable; the buuget scheuules aie completely
accuiate, oi accuiate except foi a few minoi eiiois (eiiois not involving a
misconception about the company's cost anu ievenue stiuctuie).
#QQ9:=7H89? All the buuget scheuules aie piesenteu anu aie mostly coiiect, but theie
aie one oi two significant eiiois anu some minoi eiiois. The cash buuget anu pio foima
statements contain some eiiois.
.98;L 7QQ9:=7H89? 0ne oi moie buuget scheuules aie missing. 0veiall, the buuget
scheuules uo not ieflect the company's cost anu ievenue stiuctuie anu expecteu iesults.
The cash buuget anuoi pio foima statements have seveial significant eiiois.

38
Goa|: 8S8A-2 - CrlLlcal 1hlnklng: A graduaLe wlll be able Lo evaluaLe, analyze, and lnLerpreL
lnformaLlon Lo solve problems and make buslness declslons.
Learning Outcomes
Course
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Use information to support
analysis
AC212 108 4 42 (39%) 56 (52%) 10 (9%)

We use an eLhlcs essay asslgnmenL Lo evaluaLe sLudenLs' crlLlcal Lhlnklng. ln Lhe pasL we, had
used mlnl-cases from Lhe LexL for Lhls asslgnmenL. ln sprlng 2012, all secLlons used a mlnl-case
conLalnlng an eLhlcal dllemma for Lhe assessmenL. 1hls semesLer Lhree lnsLrucLors used a mlnl-
case conLalnlng an eLhlcal dllemma, each chooslng Lhelr own case. A fourLh lnsLrucLor of Lwo
secLlons dld noL admlnlsLer Lhe assessmenL asslgnmenL afLer alLerlng Lhe class schedule due Lo
sLor-relaLed class cancellaLlons. 1he eLhlcs asslgnmenL was noL admlnlsLered ln Lwo of Lhe slx
class secLlons ln fall 2012. lor assessmenL purposes, sLudenLs are [udged on Lhelr ablllLy Lo
ldenLlfy lnformaLlon relevanL Lo Lhe eLhlcal dllemma and use LhaL lnformaLlon Lo supporL Lhe
analysls Lhey presenL ln Lhelr memo. 1he same asslgnmenL ls also used Lo assess sLudenL's
awareness of eLhlcal responslblllLles and Lhelr dlsposlLlon Loward eLhlcal conducL requlred of
accounLlng and buslness professlonals. 1he sLudenLs' grade for Lhe asslgnmenL may also be
affecLed by performance dlmenslons ouLslde Lhe assurance of learnlng assessmenL, for
example, Lhe quallLy of wrlLlng and professlonallsm exhlblLed ln Lhe memo.
As shown ln Lhe Lable ln SecLlon one, 91 of sLudenLs evaluaLed demonsLraLed accepLable
performance or beLLer, exceedlng Lhe goal of aL leasL 80, and Lhe 81 achleved ln sprlng
2012, and Lhe 74 ln fall 2011. 1he proporLlon of sLudenLs performlng aL an above accepLable
level was 39, down sllghLly from 43 ln sprlng 2012 and on par wlLh Lhe 38 ln fall 2011.
SLudenLs Lend Lo do well on Lhe LLhlcs AsslgnmenLs. 1he LexL has a good lnLroducLlon Lo LLhlcs
ln Lhe flrsL chapLer Lhrough Lhe use of Lhe lMA SLaLemenL of LLhlcal rofesslonal racLlce. Lhe
faculLy members also dlscuss eLhlcs wlLh sLudenLs LhroughouL Lhe semesLer.
We need Lo ensure sLudenLs are geLLlng pracLlce on crlLlcal Lhlnklng skllls Lhrough Lhe use of
mlnl-cases prlor Lo assessmenL.
We are golng Lo dlscuss selecLlng a common asslgnmenL Lo use for assessmenL alLhough
pracLlce asslgnmenLs may vary across secLlons. We wlll documenL dlfferlng class coverage of
Lhe eLhlcs essay and relaLed asslgnmenLs and compare resulLs Lo deLermlne mosL successful
pracLlces. Cur acLlon lLems are Lhe same as lasL semesLer. We wanL Lo make sure we use Lhe
39
same asslgnmenL for assessmenL across all secLlons for lnLer-raLer rellablllLy. We wanL Lo
ensure LhaL Lhe LexL of Lhe asslgnmenL dlffers from Lhe prlor semesLer, and we wanL Lo ensure a
mlnlmum number of crlLlcal Lhlnklng asslgnmenLs are belng used ln all secLlons.
AcLlon lLems:
1. ulscuss selecLlng a common asslgnmenL for Lhe graded eLhlcs and crlLlcal Lhlnklng
assessmenL.
asslgnmenLs should lnclude aL leasL Lwo wlLh an emphasls on eLhlcs, and oLhers (aL leasL
one, ldeally Lwo or more) wlLh a greaLer emphasls flnanclal or oLher buslness ouLcomes.
4. 1he course coordlnaLor should ensure LhaL all lnsLrucLors recognlze Lhe lmporLance of
Lhe assessmenL asslgnmenLs and admlnlsLer Lhe asslgnmenLs Lo Lhelr class secLlons.

40
Goa|: 8S8A-3 - LLhlcs and Clobal erspecLlve: A graduaLe wlll be able Lo apply eLhlcal
reasonlng ln domesLlc and global buslness slLuaLlons.
Learning Outcomes
Course(S)
Where
Measured
Number
Of
Students
Measured
Number
Of
Sections
Measured
Number of
Students
Above
Acceptable
Number of
Students
Acceptable
Number of
Students
Below
Acceptable`
1) Students will display a
willingness to adhere to ethical
obligations and disclosures of
pertinent information.
AC212 108 47 57 (53%) 47 (44%) 4 (4%)

1he same eLhlcs mlnl-case LhaL we use Lo assess sLudenL's crlLlcal Lhlnklng skllls ls also used Lo
assess Lhelr awareness of eLhlcal responslblllLles and Lhelr dlsposlLlon Loward eLhlcal conducL
requlred of accounLlng and buslness professlonals. ln sprlng 2012, all secLlons used a mlnl-case
conLalnlng an eLhlcal dllemma for Lhe assessmenL. 1hls semesLer Lhree lnsLrucLors used a mlnl-
case conLalnlng an eLhlcal dllemma, each chooslng Lhelr own case. A fourLh lnsLrucLor of Lwo
secLlons dld noL admlnlsLer Lhe assessmenL asslgnmenL afLer alLerlng Lhe class schedule due Lo
sLor-relaLed class cancellaLlons. 1he eLhlcs asslgnmenL was noL admlnlsLered ln Lwo of Lhe slx
class secLlons ln fall 2012. . lor assessmenL purposes, sLudenLs are [udged on Lhelr ablllLy Lo
ldenLlfy Lhe eLhlcal dllemma, Lhe eLhlcal and legal conslderaLlons lnvolve, Lhe legal and moral
responslblllLles of Lhe acLors, lncludlng appllcable professlonal codes of conducL, and Lhelr
recommendaLlon of acLlons LhaL saLlsfy legal and eLhlcal responslblllLles. 1he sLudenLs' grade
for Lhe asslgnmenL may also be affecLed by performance dlmenslons ouLslde Lhe assurance of
learnlng assessmenL, for example, Lhe quallLy of wrlLlng and professlonallsm exhlblLed ln Lhe
memo.
As shown ln Lhe Lable ln SecLlon one, 97 of Lhe sLudenLs evaluaLed demonsLraLed accepLable
performance or beLLer, well above our goal of aL leasL 80, and exceedlng Lhe 83 achleved ln
sprlng 2012 and Lhe 83 achleved ln fall 2011. llfLy-Lhree percenL of Lhe sLudenLs performed
aL an above accepLable level, up from 47 ln sprlng 2012 and 48 ln fall 2011.
SLudenL performance ln sprlng 2012 roughly Lhe same as ln Lhe prlor Lwo semesLers. SLudenLs
have done very well ldenLlfylng eLhlcal responslblllLles and conducL.
AL Lhe Sprlng 2012 assessmenL reLreaL, AC 212 faculLy reporLed on Lhelr experlences. AL LhaL
reLreaL we declded Lo dlsconLlnue use of Lhe LLhlcs Came. lnsLead we would reLurn Lo a serles
of 2 - 3 mlnl-cases, uslng Lhe flnal case for our assessmenL. uurlng Lhe fall 2012 we used a
modlfled asslgnmenL from Lhe new LexL for Lhe assessmenL ln Lwo secLlons and a case drawn
from a professlonal daLabase of cases ln Lhe oLher secLlons. 1he number of pracLlce cases or
41
asslgnmenLs requlrlng slmllar eLhlcal reasonlng varled across secLlons
We need Lo agree on a common case each semesLer Lo use for assessmenL purposes, and have
aL leasL one slmllar pracLlce asslgnmenL ln each class secLlon prlor Lo Lhe assessmenL. Cur
acLlon lLems are ldenLlcal Lo Lhose for 8S8A Coal 2, learnlng ouLcome 1. Cur focus wlll be on
geLLlng conslsLenL LreaLmenL across secLlons.
AcLlon lLems:
asslgnmenLs should lnclude aL leasL Lwo wlLh an emphasls on eLhlcs, and oLhers wlLh a
greaLer emphasls flnanclal or oLher buslness ouLcomes
42
Append|x
Assessment rob|em: Used for 8S8A goa| 2 outcome 1, and 8S8A Goa| 3 outcome 1
SLudenL name ____________________________________
uue uaLe: CC1C8L8 18, 2012 (aL sLarL of class- no laLe submlsslons)
(aLLach Lhls sheeL Lo your response)
?ou are Lhe conLroller of anoLher dlvlslon of Solequln CorporaLlon. CrlsLln MarLln, ConLroller of
Solequln, has called for advlce regardlng a proposal by Lance !uslc, Lhe Ceneral Manager of her
dlvlslon. ?ou should deLermlne wheLher or noL Lhe lMA Code of rofesslonal LLhlcs applles Lo
Lhls slLuaLlon. ?ou musL also declde whaL lmpllcaLlons your concluslon has regardlng Lhe
appllcablllLy of Lhe lMA Code has on your [udgmenL of Lhe eLhlcs of Lance's proposal Lo CrlsLln.
lease wrlLe a memo Lo CrlsLln ln her response Lo her requesL for advlce. ?our memo should
address Lhe followlng lssues:
a. WheLher or noL Lance's proposal ls eLhlcal. ?ou musL explaln Lhe reasonlng behlnd your
[udgmenL referrlng Lo aspecLs of Lhe lMA Code of LLhlcs and/or Lhe core values dlscussed ln
lnlLlal chapLer and oLher chapLers of Lhe LexLbook.
b. WhaL sLeps or oLher courses of acLlon do you recommend for CrlsLln lf Lance lnslsLs on Lhe
accounLlng procedures LhaL CrlsLln belleves Lo be uneLhlcal.
c. Should CrlsLln go along wlLh Lhe Ceneral Manager's (Lance's) requesL Lo reduce Lhe dlrecL
labor hours ln Lhe predeLermlned overhead raLe compuLaLlon Lo 103,000 dlrecL labor
hours?
d. Lxplaln how shavlng 3,000 off Lhe esLlmaLed dlrecL labor hours ln Lhe base for Lhe
predeLermlned overhead raLe usually resulLs ln a blg boosL ln neL operaLlng lncome
(ChrlsLmas 8onus) aL Lhe end of Lhe flscal year.
Assume Lhe followlng lnformaLlon ln your response:
LsLlmaLed overhead for Lhe year $2,200,000
LsLlmaLed dlrecL labor hours 110,000
redeLermlned overhead raLe $20 per dlrecL labor hour
(Assume Lhese amounLs were also Lhe acLual for Lhe year)
[PlnL: Pow ls under/over applled overhead closed ouL Lo cosL of goods sold aL Lhe end of Lhe
year?]
?our memo should be Lyped uslng word-processlng. lL should be professlonal ln language and
appearance. lL should be a buslness documenL, noL a casual leLLer beLween frlends.
C8lS1ln'S ulLLMMA
CrlsLln Madsen has recenLly been Lransferred Lo Lhe Appllance ulvlslon of Solequln CorporaLlon.
ShorLly afLer Laklng over her new poslLlon as dlvlslonal conLroller, she was asked Lo develop Lhe
dlvlslon's predeLermlned overhead raLe for Lhe upcomlng year. 1he accuracy of Lhe raLe ls
lmporLanL because lL ls used LhroughouL Lhe year and any overapplled or underapplled
43
overhead ls closed ouL Lo Lhe CosL of Coods Sold aL Lhe end of Lhe year. Solequln CorporaLlon
uses dlrecL labor-hours ln all of lLs dlvlslons as Lhe allocaLlon base for manufacLurlng overhead.
1o compuLe Lhe predeLermlned overhead raLe, CrlsLln dlvlded her esLlmaLe of Lhe LoLal
manufacLurlng overhead for Lhe comlng year by Lhe producLlon manager's esLlmaLe of Lhe LoLal
dlrecL labor-hours for Lhe comlng year. She Look her compuLaLlons Lo Lhe dlvlslon's general
manager for approval buL was qulLe surprlsed when he suggesLed a modlflcaLlon ln Lhe base.
Per conversaLlon wlLh Lhe general manager of Lhe Appllances ulvlslon, Lance !uslc, wenL llke
Lhls,
Cr|st|n Madsen: Pere are my calculaLlons for nexL year's predeLermlned overhead raLe. lf you
approve, we can enLer Lhe raLe lnLo Lhe compuLer on !anuary 1 and be up and runnlng ln Lhe
[ob-order cosL sysLem rlghL away Lhls year.
Lance Ius|c: 1hanks for comlng up wlLh Lhe calculaLlons so qulckly, and Lhey look [usL flne. 1here
ls, however, one sllghL modlflcaLlon l would llke Lo see. ?our esLlmaLe of Lhe LoLal dlrecL labor-
hours for Lhe year ls 110,000 hours. Pow abouL cuLLlng LhaL Lo abouL 103,000 hours?
Cr|st|n Madsen: l don'L know lf l can do LhaL. 1he producLlon manager says she wlll need abouL
110,000 dlrecL labor-hours Lo meeL Lhe sales pro[ecLlons for nexL year. 8esldes, Lhere are golng
Lo be over 108,000 dlrecL labor-hours durlng Lhe currenL year and sales are pro[ecLed Lo be
hlgher nexL year.
Lance Ius|c: CrlsLon, l know all of LhaL. l would sLlll llke Lo reduce Lhe dlrecL labor-hours ln Lhe
base Lo someLhlng llke 103,000 hours. ?ou probably don'L know LhaL l had an agreemenL wlLh
your predecessor as dlvlslonal conLroller Lo shave 3 or so off Lhe esLlmaLed dlrecL labor-hours
every year. 1haL way, we kepL a reserve LhaL usually resulLed ln a blg boosL Lo neL operaLlng
lncome aL Lhe end of Lhe flscal year ln uecember. We called lL our ChrlsLmas bonus. CorporaLe
headquarLers always seemed as pleased as punch LhaL we could pull off such a mlracle aL Lhe
end of Lhe year. 1hls sysLem has worked well for many years and l don'L wanL Lo change lL now.
44
Assessment kubr|c - AC 212, Introduct|on to Manager|a| Account|ng, Ia|| 2012
Cr|t|ca| 1h|nk|ng - Use Informat|on to Support Ana|ys|s
#H;59 7QQ9:=7H89 - All of acceptable; Iuentifies anu focuses on the most impoitant
infoimation. Coiiectly iuentifies all piimaiy stakeholueis. Key facts aie iuentifieu,
uiscusseu, anu veiy well linkeu to ielevant legal anu ethical stanuaius. Iuentifies possible
alteinatives anu aigues convincingly in a coheient uiscussion. Any unceitainties aie
acknowleugeu anu appiopiiately auuiesseu. Assumptions aie ieasonable anu well
explaineu.
#QQ9:=7H89 - Facts aie uiscusseu anu linkeu to ielevant legal anu ethical stanuaius. Nost
piimaiy stakeholueis aie iuentifieu. Alteinative couises of action aie iuentifieu.
Aigument is consistent with anu iefeis to the uiscussion of the facts.
.98;L #QQ9:=7H89 - veiy limiteu uiscussion of facts with little oi no link to ielevant
ethical anu legal stanuaius. Significant stakeholueis aie not incluueu in the uiscussion. A
couise of action is iecommenueu without uiscussing oi iuentifying alteinatives, oi the
aigument is uisoiganizeu, oi contains some contiauictoiy oi unsuppoiteu asseitions.

Assessment kubr|c - AC 212, Introduct|on to Manager|a| Account|ng, Ia|| 2012
Lth|cs and G|oba| erspect|ve - Students D|sp|ay a W||||ngness to Adhere to
Lth|ca| Cb||gat|ons and D|sc|osures of ert|nent Informat|on
#H;59 7QQ9:=7H89 X All of acceptable applicable legal iequiiements anu coues of ethics
aie iecognizeu anu well uiscusseu. Legal anu ethical iamifications (compliance oi
noncompliance) of theii choice oi iecommenuation aie completely auuiesseu. The choice
oi iecommenuation fully satisfies ielevant legal anu ethical obligations.
#QQ9:=7H89 X Basic iecognition of applicable legal iequiiements anu coues of ethics. Legal
anu ethical iamifications (compliance oi noncompliance) of theii choice oi
iecommenuation aie at least biiefly auuiesseu. The choice oi iecommenuation shows
intent to fulfill legal anu ethical obligations.
.98;L 7QQ9:=7H89 X Failuie to iecognize applicable legal iequiiements oi coues of ethics.
Choice oi iecommenuation fails to fulfill legal anu ethical obligations.

!"#$ "#&# '())*+&,(- ./(0
!""#$%&'%( * +,-'%( ./01
234-%'%( 5$&"#637 4%8 9#4:7 ;4% <3 =#$%8 4&> ?&&,>@@AAAB""7$B38$@<$7'%377
______________________________________
a g e | ! #$ %
&'('&()*+#,(-..#/01203(45!
1*+&,(- 2-* 3 4(#)5 6*#/-,-7 28&+(0* #-9 :80*/,+ ;*<8)&<
4(#)= 1&89*-&< >?( 7/#98#&* @/(0 &?* !++(8-&,-7 $#A(/ <?(8)9 B(<<*<< +(0B*&*-+,*< #-9 <C,))<
-**9*9 @(/ *-&/D #-9 #9E#-+*0*-& ,- &?* #++(8-&,-7 B/(@*<<,(-F
Learnlng CuLcome: (LC 1) ueLermlne and apply approprlaLe accounLlng sLandard for Lhe clrcumsLance
1oLals -- SecLlons Measured: 3, SLudenLs Measured: 64, Where Measured: AC313
1*+&,(- G>( H!IJ '8//*-& .,-9,-7<
'8//*-& 1*0*<&*/= :80*/,+ ;*<8)&<
'67#8 -..691*:76 -..691*:76 -:#;6 -..691*:76
number of
SLudenLs
6 (9) 39 (61) 19 (30)

'8//*-& 1*0*<&*/= "*<+/,B&,(- ;*<8)&<
ln Lhe sprlng 2013 semesLer 91 of Lhe sLudenLs performed aL an accepLable or above accepLable level, well above Lhe 80 LargeL.
1hls was a slgnlflcanL lmprovemenL compared Lo 77 for Lhe fall 2012 semesLer.
1*+&,(-< G>( HKI J L M*#/ G/*-9*9 .,-9,-7<
G/*-9= :80*/,+ ;*<8)&<
&6<6=16, >#/,=6 ?@6,6
)6*=/,6A
B/<:6, #$
&1/A601=
B/<:6, #$
&6.12#0=
'67#8
-..691*:76
-..691*:76 -:#;6
-..691*:76
Sprlng 2010 AC313 60 2 6.67 18.33 73.00
Sprlng 2011 AC313 88 3 6.82 18.18 73.00
lall 2011 AC313 71 3 23.94 36.62 39.44
Sprlng 2012 AC313 87 3 14.94 36.78 48.28
lall 2012 AC313 66 3 22.73 33.03 24.24
Sprlng 2013 AC313 64 3 9.38 60.94 29.69

"*<+/,B&,(- (@ G/*-9
lL ls dlfflculL Lo analyze Lhe Lrend ln performance. Much of Lhe varlaLlon can be aLLrlbuLed Lo dlfferences ln assessmenL lnsLrumenLs
and admlnlsLraLlon. 1hls ls Lhe flrsL semesLer slnce sprlng 2011 LhaL Lhe same assessmenL Lool was used for all Lhree secLlons. ln
sprlng 2010 and fall 2011, sLudenLs were assessed uslng a Lake home problem. ln Lhe 2011-12 academlc year, a Lake home problem
was used ln some secLlons and embedded exam quesLlons. ln fall 2012 embedded exam quesLlons were used ln Lwo secLlons and a
dedlcaLed ln-class qulz was used ln anoLher secLlon. ln sprlng 2013 all Lhree secLlons used embedded exam quesLlons. ln general,
sLudenL performance on embedded exam quesLlons was below LhaL on Lhe Lake-home asslgnmenL so sprlng 2013 resulLs were a
slgnlflcanL lmprovemenL compared Lo Lhe fall 2011, sprlng 2012, and fall 2012 semesLers.
1*+&,(- G?/** J !-#)D<,< (@ ;*<8)&<
SLudenL performance lncreased slgnlflcanLly from 77 ln Lhe fall 2012 semesLer Lo 91 ln Lhe sprlng 2013 semesLer. 1hls ls Lhe flrsL
Llme slnce Lhe sprlng 2011 semesLer LhaL Lhe same assessmenL Lool was used ln all Lhree secLlons. ln Lhe pasL Lhree semesLers, Lwo of
Lhe Lhree secLlons evaluaLed sLudenLs uslng Lhe same lnsLrumenL ln Lhe fall 2012 semesLer and ln prevlous Lwo semesLers Lhe same
lnsLrumenL buL Lhe second lease problem requlred Lwo years of enLrles plus reverslng enLrles. 8ased on lack of Llme Lo compleLe Lhe
exam, Lhe second problem was modlfled Lo requlre only one year of enLrles. 1he Lable below shows Lhe resulLs based on Lwo
secLlons ln Lhe prevlous Lhree semesLers.

!"#$ "#&# '())*+&,(- ./(0
!""#$%&'%( * +,-'%( ./01
234-%'%( 5$&"#637 4%8 9#4:7 ;4% <3 =#$%8 4&> ?&&,>@@AAAB""7$B38$@<$7'%377
______________________________________
a g e | C #$ %
&'('&()*+#,(-..#/01203(45!

SlgnlflcanL lmprovemenL was shown ln fall 2012. 1hls can be aLLrlbuLed Lo modlflcaLlon of Lhe second problem. ln Lhe sprlng 2013 Lhe
resulLs agaln [umped from 80 Lo 91. osslble reasons for Lhe change ln sLudenL performance may be LhaL an addlLlonal class
perlod was dedlcaLed Lo leases. AnoLher posslble explanaLlon ls LhaL Lhe sLudenLs puL forLh more efforL ln Lhelr preparaLlon for Lhe
exam. 1he lnsLrucLor of Lwo of Lhe Lhree secLlons admlnlsLered Lhe lnsLrumenL durlng Lhe Lhlrd exam (Lhree exams plus a cumulaLlve
flnal). 1he class averages on Lhe problem secLlon on Lhe exams were 61 for Lhe flrsL exam, 72 for Lhe second, and 80 for Lhe
Lhlrd exam.
1*+&,(- .(8/ H!I J N<* (@ ;*<8)&<
1he currenL semesLer resulLs were noLeworLhy. Areas where some sLudenLs sLruggled were ln Lhe lncluslon of Lhe bargaln-purchase
opLlon ln Lhe mlnlmum lease paymenLs and ldenLlfylng Lhe Lhlrd problem as a sales-Lype lease. A large percenLage of Lhe sLudenLs
were able Lo correcLly ldenLlfy Lhe caplLal lease crlLerla and prepare an amorLlzaLlon schedule. 1he lnsLrucLors should conLlnue Lo
focus on how Lo accounL for Lhe guaranLeed and non-guaranLeed resldual values and bargaln-purchase opLlons. lL ls also
recommended LhaL Lhe lease problems be changed as sLudenLs may be sharlng wlLh oLher sLudenLs LhaL Lhe second problem
conLalns a bargaln-purchase opLlon and Lhe Lhlrd problem ls a sales-Lype lease.
1*+&,(- .(8/ HKI J '?#-7*< &( !<<*<<0*-&
We are saLlsfled wlLh Lhe embedded LesL asslgnmenLs currenLly belng used. We plan no changes Lo Lhe assessmenL meLhod.
1*+&,(- .,E* 3 4*-*/#) O98+#&,(-
noL appllcable Lo school of buslness courses
1*+&,(- .,E* 3 !<<*<<0*-& P)#-
We plan Lo apply Lhe currenL assessmenL conslsLenLly across all secLlons and use Lhe resulLs Lo ldenLlfy currlcular changes needed Lo
address any sLudenL deflclencles.
!BB*-9,Q
SLudenL ablllLy Lo deLermlne and apply Lhe approprlaLe accounLlng sLandard(s) for a buslness evenL or a glven seL of clrcumsLances
was assessed uslng Lhree problems ln an exam. 1he problems and scorlng rubrlcs are presenLed below. Cverall scores less Lhan 30
below accepLable, scores beLween 30 and 44 accepLable, and scores 43 or beLLer above accepLable.

AC 313-01 & 70
Lessee Accounting
The following facts pertain to a non-cancelable lease agreement between Jameson Leasing Company and Axel Company, a lessee.
Lease term 5 years
Economic life of Leased Equipment under Capital Leases 12 years

The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to
be incurred by the lessor. The lessee assumes responsibility for all executory costs.
PV of $1 = 0.56743
!"#$ "#&# '())*+&,(- ./(0
!""#$%&'%( * +,-'%( ./01
234-%'%( 5$&"#637 4%8 9#4:7 ;4% <3 =#$%8 4&> ?&&,>@@AAAB""7$B38$@<$7'%377
______________________________________
a g e | % #$ %
&'('&()*+#,(-..#/01203(45!
d) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and
expenses related to this lease for the year 2012.

Rubric:
a) 1 point
b) 1 point

Rubric:
Lessor Accounting
On January 1, 2012, Greenspan Corporation, a machinery dealer, leased to Geitner Inc. a machine that cost $127,000 to manufacture.
The lease agreement covers the 6-year useful life of the machinery and requires 6 equal annual payments of $39,200 payable each
January 1, beginning January 1, 2012. An interest rate of 11% is implicit in the lease agreement. Collectibility of the rentals is
reasonably assured, and there are no important uncertainties concerning costs. Prepare Greenspans January 1, 2012, journal entries.
Present value factor is 4.69590 for an annuity due and the present value factor for an ordinary annuity is 4.23054.
Rubric:

2&?*/ '(00*-&<

Accounting 2013 PDF

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Accounting 2013 PDF

Загружено:

Авторское право:

Доступные форматы

2012-13 Annual Report: Department of Accounting

Вам также может понравиться