A blended learning approach to introductory accounting Accounting Made Easy

1. A blended learning approach to introductory accounting Accounting Made Easy Guy Baker Professor, Hospitality Coordinator & Co-op Coordinator, School of Tourism Seneca College of Applied Arts and Technology

2. Agenda • Challenges • How it works • Ease of transition for instructors • Learning Management System • Results

3. Challenges

4. AME System What are the challenges facing students who do not have a financial background?

5. The Gap Would you have any idea what this puzzle represents without the whole picture in front of you?

6. AME System Notice how quickly your frame of reference changed when you saw the map

7. Most students see accounting the same way NO CONTEXT Accounts Receivables Assets - Liabilities Accounts Payables Gross profit Income - Revenues Cash Flow - Expenses Return on Investment Owner’s Equity Direct Labour Inventory

8. Common Challenges It’s tough to teach a subject: 1. When the student has no business frame of reference. 2. When the subject gets a bad rap even before they commence class. It’s a pity since basic accounting acumen is an essential life skill.

9. How it works

10. 90% of what we do This system is about experiencing accounting Abstract to Concrete We tend to remember: 20% of what we hear 30% of what we see

11. Converting abstract to concrete

12. Converted to an online application Effective but logistically challenging

13. Multi Sensory Tools

14. Learning objectives are repeated and reinforced in class using a textbook and other teachers resources. How the program works Students are provided with a preplanned section to complete online prior to attending class. Computers are not used in class – no mandatory lab time

15. Computer Accounting Technical Accounting Some more complex transactions are included in thissection…bank reconciliation, petty cash, payroll etc. Step-by-step process Commences with personal statements for context Business cases Controls Financial Analysis Trade Math Cash Flow Business GAAP, ethics and management reporting Personal

16. Accounting is abstract for the newly initiated

17. 500 500 500 500 Increase & decrease is used in conjunction with the board. Multi Sensory Pedagogical Tools Abstract to concrete Audio. visual, color coded, tactile

18. The Balance Sheet The Balance Sheet is used to record what you OWN versus what youOWE.

19. Record all the assets Voice and text prompts 15,000 15,000 100,000 100,000 5,000 5,000

20. 80,000  Record what you owe Record $80,000on the board representing the value of theMORTGAGEon your home. Is this an increase or decrease? Increase Decrease

21. Net Worth The difference between what you own and what you owe is called your NET WORTH 40,000

22. Creating the value & purpose of accounting The principle of Net Worth is what drives our personal and business economic lives. Business is about increasing net worth, hence the importance of using the accounting system to measure activities that impact it.

23. The Role of the Income Statement

24. How much are you worth? 3,000 How much are you now worth? $40,000  $43,000

25. Reaction • Transaction • Financial consequence Newton's 3rd Law For every action There is an equaland opposite:

26. Temporary Account Another word for becoming richer is “revenue”. You have a choice Change your net worth each time

27. Revenue recognition Recognize an increase to net worth 3,000 3,000

28. 2,000 Paying Expenses Now it’s time to pay various cash expenses in the amount of $2,000 2,000 Take $2,000 from your bank account and place it back in the tray & complete your T-account entry $ 18,000 $ 100,000 $ 80,000 $ 5,000 $ 40,000

29.  Once again, you have a choice. Either decrease your Net Worth now, or maintain a temporary record called an EXPENSE. [ It is common for students to want to decrease revenues] The role of the income statement What happened to your Net Worth? Click on the correct answer Did it: a. Increase b. Decrease c. Stay the same $ 18,000 $ 18,000 $ 100,000 $ 80,000 $ 5,000 - $ 2,000 $ 40,000

30. The role of the income statement Place $2,000 on miscellaneous expenses. Remember that by placing a token ON the board you are INCREASING your T-account $ 3,000 2,000 $ 18,000 $ 100,000 $ 80,000 2,000 Another word for becoming poorer is “EXPENSE”. $ 5,000 - $ 2,000 $ 40,000 2,000

31. Add all the expenses 2,000 What does the surplus do to your net worth? $ 41,000 1,000 Ending the period Add all the revenues 3,000 $ 18,000 $ 100,000 $ 80,000 $ 5,000 $ 40,000

32. Ending the period Once you have updated your net worth, clear the income statement $ 18,000 $ 100,000 $ 80,000 and commence a new accounting period. $ 5,000 $ 41,000 41,000

33. The role of the income statement In other words, the income statement is part of your net Worth which provides a summary of which revenues and which expenses caused your net worth to increase or decrease. $ 18,000 $ 100,000 $ 80,000 Revenues were $3,000 $ 5,000 Expenses were $2,000 $ 41,000 The difference is $1,000

34. The Accounting Equation Students will continually see the logic of the Accounting Equation 125,000 = 122,000

35. The Accounting Equation Back in Balance

36. The power of AME Less than 10 minutes 1. The role of the balance sheet 2. The role of the income statement 3. T-Accounts 4. The logic of double entry 5. The accounting period 6. An introduction to the accounting equation

37. Raising the bar Powerful principles are taught in a logical manner Keep reinforcing previous lessons before introducing new principles using clickers

38. Financial Analysis

39. Financial Analysis Linking ratios to operations

40. Financial Analysis Hot spots

41. Students Resource There is little if any text that is not useful to this program. The layout is extremely easy to read especially for ESL. The pedagogical tools are colour coded for ease of reference. Some highlights of special design features of the book…

42. Pedagogy to hands on application

43. Easy to understand diagrams Three ways to recognize an expense.

44. Finding the “sticky” points Online and textbook exercises are scaled up which allows both student and instructor to evaluate the level of comprehension.

45. Transactions in context Student will always see the whole enterprise to maintain context to each transaction in relation to revenue, expense recognition, adjustments and cash flow.

46. Easy to read PDF summaries

47. Ease of transition for instructors

48. Instructors Binder 1. Instruction to each chapter 2. Objectives 3. Lesson Guidelines & lesson plan 4. The online section that must be completed by the student before class 5. Colour hard copy of all the online slides 6. Student book answer key 7. Tabs to insert your own notes

49. Instructors Binder 8. Test Bank - Multiple choice questions, Exercises, Projects, Class Tests, Mid Term Exams & Final Exams 9. Slide rules for each student & instructor 10. CD with Power Point Slides and detailed animations

50. Unique Partnership Self paced online independent learning to teach principles. Lessons and quizzes. Well structured lessons to reinforced in class by applying the principles to practical applications Controlled and monitored progress Reinforced in class – workbook without computers True lesson before attending class