Development of an

Advanced Placement Accounting Course

Dan Deines, Glenda Eichman, Susan Crosson

Criteria for a New AP Course and Exam First Accounting Course Workshops

◦ Kansas Model◦ Florida Model◦ Other Best practices…◦ Michigan Model◦ Other Stakeholder Venues

First Course in Accounting Models◦ Your Financial or Principles course◦ CLEP-Financial in and Principles out◦ NBEA-Achievement Standards◦ KSU -Deines, D. and E. Valentine, A Career-Neutral Accounting

Curriculum, Strategic Finance, (January 2007): 31-39 Department Meeting materials for you to use

No new courses until 2010 AP Application must document:

◦ 500 US secondary schools offering a course equivalent to AP-level

◦ 10,000 students exam ready◦ 1,000 colleges and universities agree to provide

credit/placement for acceptable performance on new AP exam

◦ Teachers prepared through workshops, conferences, and summer institutes

Source: AP Central of The College Board http://apcentral.collegeboard.com/apc/Controller.jpf

First Accounting Course Workshops

for High School Teachers…a great recruiting opportunity

Kansas-KSU Pilot Florida HS Accounting Teacher Summer

Camp -multiple day teaching conference Michigan High School Leaders Conference

-one day conference for teachers and up to 5 of their best students…separate teacher and student tracks

AICPA’s High School Symposiums -one day workshops that dealt primarily with the Takin’ Care of Business curriculum

Bottom line: Funds available to co-sponsor outreach/ recruiting events

National Business Education Association (NBEA) -National meeting sessions and CPE

Future Business Leaders Association (FBLA) -Regional meeting sessions

National Academies of Finance (NAF) -National meeting sessions and CPE

American Accounting Association (AAA)- National meeting sessions

Teachers of Accounting at Two Year Colleges (TACTYC)-National meeting sessions

What should be the Learning Outcomes of an Advanced

Placement Accounting Course?

Possibilities:Your Course

Financial Accounting CLEP ExamNBEA Standards

KSU Pilot

New Financial Accounting CLEP Exam

Curriculum Survey-Test Specifications-Exam: CLEP Financial Accounting Curriculum Survey, Summary of Results (.pdf/110K)

Description of the Examination The purpose of the exam is to assess student mastery of the skills and

concepts required for success in a first-semester financial accounting course. Colleges may award credit for a one-semester course in financial accounting.

The exam contains 75 questions to be answered in 90 minutes.

Knowledge and Skills Required The purpose of the exam is to assess student mastery of the skills and

concepts required for success in a first-semester financial accounting course. Exam questions require students to demonstrate that they:

Are familiar with accounting concepts and terminology Have an understanding of the preparation, use, and analysis of accounting

data and financial reports issued for both internal and external purposes Can apply accounting techniques to problem-solving situations involving

computations Understand the rationale for generally accepted accounting principles and

procedures

20–30% General topics • Generally accepted accounting principles • Rules of double-entry accounting/ transaction analysis/accounting equation • The accounting cycle • Business ethics • Purpose of, presentation of, and relationships between financial statements • Forms of business 20–30% The Income Statement • Presentation format issues • Recognition of revenue and expenses • Cost of goods sold • Irregular items (e.g., discontinued operations, extraordinary items, etc.) • Profitability analysis

30–40% The Balance Sheet • Cash and internal controls • Valuation of accounts and notes receivable (including bad debts) • Valuation of inventories • Acquistion and disposal of long-term asset • Depreciation/Amortization/ Depletion • Intangible assets (e.g., patents, goodwill, etc.) • Accounts and notes payable • Long-term liabilities (e.g., bonds payable) • Owner’s equity • Preferred and common stock • Retained earnings • Liquidity, solvency and activity analysis 5–10% Statement of Cash Flows • Indirect method • Cash flow analysis • Operating, financing and investing activities Less than 5% Miscellaneous • Investments • Contingent liabilities

National Business Education Association Standards

I. The Accounting CycleAchievement Standard: Complete and explain the purpose of the various steps in the accounting cycle. II. The Accounting ProcessAchievement Standard: Apply generally accepted accounting principles to determine the value of assets, liabilities, and owner's equity. III. Financial StatementsAchievement Standard: Prepare, interpret, and analyze financial statements using manual and computerized systems for service, merchandising, and manufacturing businesses. IV. Special ApplicationsAchievement Standard: Apply appropriate accounting principles to payroll, income taxation, managerial systems, and various forms of ownership. V. Interpretation and Use of DataAchievement Standard: Use planning and control principles to evaluate the performance of an organization and apply differential analysis and present-value concepts to make decisions.

◦ From the National Standards for Business Education © 2001 by the National Business Education Association, 1914 Association Drive, Reston, VA 20191.  

ACCOUNTING is an essential aspect of every business institution and organization. As future workers, small business owners, and entrepreneurs, students who understand basic accounting principles will more knowledgeably manage their companies' financial resources. As citizens, future parents, and investors, these students will be better prepared to make the economic decisions that will impact their communities-such as passing a referendum to build new schools-and to make the financial decisions that will affect their own economic futures.

The introduction of computerized systems has made the mastery of technology skills an integral part of the accounting curriculum. Automated procedures eliminate the repetitive tasks required for manual accounting and facilitate the inclusion of individual and group activities that involve higher-level thinking skills. The Internet also offers tremendous opportunities for financial research and a wide variety of learning applications and activities.

The following attitudes and skills should be integrated and reinforced throughout the entire accounting curriculum: critical thinking, decision making, problem solving, team building, ethics, work quality, communication, and technology.

These accounting standards identify the knowledge and skills appropriate for courses at both the high school and two-year college levels. Performance expectations appropriate for the second year of high school accounting are indicated with an asterisk. These accounting standards do not address topics generally taught in intermediate, cost, tax, and other advanced accounting courses.

Below is an overview of the achievement standards for the accounting content area. Each achievement standard states the understanding and competency students should attain. Each achievement standard has corresponding performance expectations. Each performance expectation delineates what students need to do to exhibit the knowledge and the skills required to meet the achievement standard. The corresponding performance expectations for each achievement standard are detailed in the publication.  

KSU course details:Dr. Dan Deines

KPMG Peat Marwick Professor114 Calvin Hall

Kansas State UniversityManhattan, KS 66506

Phone: 785-532-6038Fax: 785-532-5959

Email: ddeines@ksu.edu

Leadership and input from AAA and its academic members is requested to solve pre-college accounting course issues

…and will proceed even without our expertise

Bottom line : :

•First Course Workshops: Develop and offer annual sessions and workshops on the first accounting courses.

•First Accounting Course content: Which topics should be covered, the high school teachers want to know…

•Best Practices-curriculum: Identify schools (i.e., Academy of Finance magnet programs, Colleges of Business, or Colleges of Education), states, and/or faculty

•Best Practices-articulation agreements: Identify and collect how colleges or states grant credit

•Identify Interested Parties: Faculty, practitioners, and organizations interested in improving the pre-college courses in accounting

•Inform Accounting Community by publishing articles, presenting sessions, providing handouts

Thanks for all you do to Improve Accounting Education!

What can you do?What can you do?