Financial Accounting Bundle
Financial Accounting Bundle
Courseware + Simternship™
The Financial Accounting Bundle contains everything you need to teach an authoritative, engaging course from day one. Stice and Stice’s dynamic “Introduction to Financial Accounting” courseware acquaints students with the mechanics of the accounting cycle, while the Financial Accounting Simternship gives students hands-on experience with the concepts you’re teaching them in the classroom.
When used together, the courseware and Simternship help you create robust experiential learning opportunities for your students. The Financial Accounting Bundle helps you teach your best course with more ease and engagement!
Financial Accounting Courseware
Financial Accounting Courseware
A Cutting-edge Accounting Curriculum Backed by Decades of Experience
The “Introduction to Financial Accounting” courseware gives you everything you need to teach a great course. This courseware contains ready-made resources, such as detailed, turnkey lesson plans; engaging explanatory videos from the authors; auto-graded quizzes and engaging assignments; 75 lecture slide decks; a sample course calendar; and more. The included resources make it more than a Financial Accounting textbook — it’s a whole course.
Plus, your students get an accessible, engaging text that brings complex accounting principles to life!
Together, Dr. Kay Stice and Dr. Jim Stice have more than 70 years of experience teaching accounting. They bring a practical, hands-on approach to modern accounting subjects, providing you with the resources to teach an authoritative course in less prep time.
Table of Contents
CHAPTER 1: Purpose and Users of Accounting
Introduction: 7,000 Years Ago in Mesopotamia …
CHAPTER 2: Overview of the Financial Statements
Introduction: Turning an Entrepreneur’s Dreams into Reality
CHAPTER 3: The Accounting Cycle: The Mechanics of Accounting
Introduction: Bookkeeping as a Tool of War
CHAPTER 4: Completing the Accounting Cycle
Introduction: Net Income vs. Cash Flow: The Case of Two Brothers
CHAPTER 5: Internal Controls: Ensuring the Integrity of Financial Information
Introduction: Shady Accounting Earns a CEO a 24-year Prison Sentence
CHAPTER 6: Receivables: Selling a Product or Service
Introduction: Who Owes Money to Google?
CHAPTER 7: Inventory and the Cost of Sales
Introduction: Ramona Rice: Which Inventory Was Sold?
CHAPTER 8: Employee Compensation
Introduction: Eunice Burns, the University of Winnemucca, and the Difference Between Gross and Net Pay
CHAPTER 9: Investments: Property, Plant, and Equipment and Intangible Assets
Introduction: Garbage, Blockbuster Video, and Depreciation
CHAPTER 10: Financing: Long-term Liabilities
Introduction: In What Currencies Do Disney and Coca-Cola Borrow Money?
CHAPTER 11: Financing: Equity
Introduction: What Is the Dow Jones Industrial Average?
CHAPTER 12: Investments: Debt and Equity Securities
Introduction: Who, or What, Is Berkshire Hathaway?
CHAPTER 13: Statement of Cash Flows
Introduction: Tesla’s Transformation from a Negative to a Positive Free Cash Flow Company
CHAPTER 14: Analyzing Financial Statements
Introduction: The French Revolution, Gunpowder, and Financial Statement Analysis
APPENDIX: Time Value of Money
Key Learning Objectives
CHAPTER 1 Learning Objectives
- Describe the purpose of accounting, and explain its role in business and society.
- Identify the primary users of accounting information.
- Describe the environment of accounting, including the effects of generally accepted accounting principles, international business, ethical considerations, and technology.
- Analyze the reasons for studying accounting.
CHAPTER 2 Learning Objectives
- Understand the basic elements, uses, and limitations of the balance sheet.
- Understand the basic elements and uses of the income statement.
- Understand the categories and uses of the statement of cash flows and see how the primary financial statements tie together.
- Recognize the need for financial statement notes and identify the types of information included in the notes.
- Describe the purpose of an audit report and the incentives the auditor has to perform a good audit.
- Explain the fundamental concepts and assumptions that underlie financial accounting.
CHAPTER 3 Learning Objectives
- Understand the process of transforming transaction data into useful accounting information.
- Analyze transactions and determine how those transactions affect the accounting equation (step one of the accounting cycle).
- Record the effects of transactions using journal entries (step two of the accounting cycle).
- Summarize the resulting journal entries through posting and prepare a trial balance (step three of the accounting cycle).
- Describe how technology has affected the first three steps of the accounting cycle.
CHAPTER 4 Learning Objectives
- Describe how accrual accounting allows for timely reporting and a better measure of a company’s economic performance.
- Explain the need for adjusting entries and make adjusting entries for unrecorded receivables, unrecorded liabilities, prepaid expenses, and unearned revenues.
- Explain the preparation of the financial statements, the explanatory notes, and the audit report.
- Complete the closing process in the accounting cycle.
- Understand how all the steps in the accounting cycle fit together.
CHAPTER 5 Learning Objectives
- Identify the types of problems that can appear in financial statements.
- Describe the safeguards employed to ensure that financial statements are free from problems.
- Understand the concept of earnings management and why it occurs.
- Understand the major parts of the Sarbanes-Oxley Act and how it impacts financial reporting.
- Describe the role of auditors and how their presence affects the integrity of financial statements.
- Explain the role of the Securities and Exchange Commission in adding credibility to financial statements.
CHAPTER 6 Learning Objectives
- Understand the three basic types of business activities: operating, investing, and financing.
- Use the two revenue recognition criteria to decide when the revenue from a sale or service should be recorded in the accounting records.
- Properly account for the collection of cash and describe the business controls necessary to safeguard cash.
- Record the losses resulting from credit customers who do not pay their bills.
- Evaluate a company’s management of its receivables by computing and analyzing appropriate financial ratios.
- Match revenues and expenses by estimating and recording future warranty and service costs associated with a sale.
- Reconcile a checking account.
CHAPTER 7 Learning Objectives
- Identify what items and costs should be included in inventory and cost of goods sold.
- Account for inventory purchases and sales using both a perpetual and a periodic inventory system.
- Calculate cost of goods sold using the results of an inventory count and understand the impact of errors in ending inventory on reported cost of goods sold.
- Apply the four inventory cost flow alternatives: specific identification, FIFO, LIFO, and average cost.
- Use financial ratios to evaluate a company’s inventory level.
CHAPTER 8 Learning Objectives
- Describe the various components of employee compensation expense.
- Distinguish between gross pay and net pay, compute various payroll tax items, and prepare the necessary journal entries to record payroll.
- Understand the accounting associated with fringe benefit items such as compensated absences, bonuses and stock options, post-employment benefits, pensions, and post-retirement healthcare benefits.
CHAPTER 9 Learning Objectives
- Identify the two major categories of long-term operating assets: property, plant, and equipment and intangible assets.
- Record the acquisition of property, plant, and equipment through a simple purchase as well as through a lease, by self-construction, and as part of the purchase of several assets at once.
- Compute straight-line and units-of-production depreciation expense for plant and equipment.
- Record the discarding and selling of property, plant, and equipment.
- Account for the acquisition and amortization of intangible assets and understand the special difficulties associated with accounting for intangibles.
CHAPTER 10 Learning Objectives
- Use present value concepts to measure long-term liabilities.
- Account for long-term liabilities, including notes payable and mortgages payable.
- Account for finance lease obligations and understand the significance of operating leases that are now included on the balance sheet.
- Account for bonds, including the original issuance, the payment of interest, and the retirement of bonds.
- Use debt-related financial ratios to determine the degree of a company’s financial leverage and its ability to repay loans.
CHAPTER 11 Learning Objectives
- Distinguish between debt and equity financing, and describe the advantages and disadvantages of organizing a business as a proprietorship or a partnership.
- Describe the basic characteristics of a corporation and the nature of common and preferred stock.
- Account for the issuance and repurchase of common and preferred stock.
- Understand the factors that affect retained earnings, describe the factors determining whether a company can and should pay cash dividends, and account for cash dividends.
- Describe the purpose of reporting comprehensive income in the equity section of the balance sheet, and prepare a statement of stockholders’ equity.
CHAPTER 12 Learning Objectives
- Understand why companies invest in other companies.
- Understand the different classifications for securities.
- Account for the purchase, recognition of revenue, and sale of trading and available-for-sale securities.
- Account for changes in the value of securities.
CHAPTER 13 Learning Objectives
- Understand the purpose of a statement of cash flows.
- Recognize the different types of information reported in the statement of cash flows.
- Prepare a simple statement of cash flows.
- Analyze financial statements to prepare a statement of cash flows.
CHAPTER 14 Learning Objectives
- Explain the purpose of financial statement analysis.
- Understand the relationships between financial statement numbers and use ratios in analyzing and describing a company’s performance.
- Use common-size financial statements to compare financial statements across years and between companies.
- Understand the DuPont framework and how return on equity can be broken out into profitability, efficiency, and leverage components.
- Conduct a focused examination of a company’s efficiency by using asset-specific ratios.
- Determine the degree of a company’s financial leverage and its ability to repay loans using debt-related financial ratios.
- Use cash flow information to evaluate cash flow ratios.
- Understand the limitations of financial statement analysis.
Educator Resources
The courseware’s materials make teaching financial accounting easier for you and more engaging for students. The following resources are included:
Auto-graded quiz for each chapter
14 turnkey assignments
75 lecture slide decks
More than 20 lesson plans
Engaging, author-led video content
Real-world examples
Sample syllabus and course calendars
Cumulative glossary for student reference
LMS integration with Stukent platforms
CHAPTER 1: Purpose and Users of Accounting
Introduction: 7,000 Years Ago in Mesopotamia …
CHAPTER 2: Overview of the Financial Statements
Introduction: Turning an Entrepreneur’s Dreams into Reality
CHAPTER 3: The Accounting Cycle: The Mechanics of Accounting
Introduction: Bookkeeping as a Tool of War
CHAPTER 4: Completing the Accounting Cycle
Introduction: Net Income vs. Cash Flow: The Case of Two Brothers
CHAPTER 5: Internal Controls: Ensuring the Integrity of Financial Information
Introduction: Shady Accounting Earns a CEO a 24-year Prison Sentence
CHAPTER 6: Receivables: Selling a Product or Service
Introduction: Who Owes Money to Google?
CHAPTER 7: Inventory and the Cost of Sales
Introduction: Ramona Rice: Which Inventory Was Sold?
CHAPTER 8: Employee Compensation
Introduction: Eunice Burns, the University of Winnemucca, and the Difference Between Gross and Net Pay
CHAPTER 9: Investments: Property, Plant, and Equipment and Intangible Assets
Introduction: Garbage, Blockbuster Video, and Depreciation
CHAPTER 10: Financing: Long-term Liabilities
Introduction: In What Currencies Do Disney and Coca-Cola Borrow Money?
CHAPTER 11: Financing: Equity
Introduction: What Is the Dow Jones Industrial Average?
CHAPTER 12: Investments: Debt and Equity Securities
Introduction: Who, or What, Is Berkshire Hathaway?
CHAPTER 13: Statement of Cash Flows
Introduction: Tesla’s Transformation from a Negative to a Positive Free Cash Flow Company
CHAPTER 14: Analyzing Financial Statements
Introduction: The French Revolution, Gunpowder, and Financial Statement Analysis
APPENDIX: Time Value of Money
CHAPTER 1 Learning Objectives
- Describe the purpose of accounting, and explain its role in business and society.
- Identify the primary users of accounting information.
- Describe the environment of accounting, including the effects of generally accepted accounting principles, international business, ethical considerations, and technology.
- Analyze the reasons for studying accounting.
CHAPTER 2 Learning Objectives
- Understand the basic elements, uses, and limitations of the balance sheet.
- Understand the basic elements and uses of the income statement.
- Understand the categories and uses of the statement of cash flows and see how the primary financial statements tie together.
- Recognize the need for financial statement notes and identify the types of information included in the notes.
- Describe the purpose of an audit report and the incentives the auditor has to perform a good audit.
- Explain the fundamental concepts and assumptions that underlie financial accounting.
CHAPTER 3 Learning Objectives
- Understand the process of transforming transaction data into useful accounting information.
- Analyze transactions and determine how those transactions affect the accounting equation (step one of the accounting cycle).
- Record the effects of transactions using journal entries (step two of the accounting cycle).
- Summarize the resulting journal entries through posting and prepare a trial balance (step three of the accounting cycle).
- Describe how technology has affected the first three steps of the accounting cycle.
CHAPTER 4 Learning Objectives
- Describe how accrual accounting allows for timely reporting and a better measure of a company’s economic performance.
- Explain the need for adjusting entries and make adjusting entries for unrecorded receivables, unrecorded liabilities, prepaid expenses, and unearned revenues.
- Explain the preparation of the financial statements, the explanatory notes, and the audit report.
- Complete the closing process in the accounting cycle.
- Understand how all the steps in the accounting cycle fit together.
CHAPTER 5 Learning Objectives
- Identify the types of problems that can appear in financial statements.
- Describe the safeguards employed to ensure that financial statements are free from problems.
- Understand the concept of earnings management and why it occurs.
- Understand the major parts of the Sarbanes-Oxley Act and how it impacts financial reporting.
- Describe the role of auditors and how their presence affects the integrity of financial statements.
- Explain the role of the Securities and Exchange Commission in adding credibility to financial statements.
CHAPTER 6 Learning Objectives
- Understand the three basic types of business activities: operating, investing, and financing.
- Use the two revenue recognition criteria to decide when the revenue from a sale or service should be recorded in the accounting records.
- Properly account for the collection of cash and describe the business controls necessary to safeguard cash.
- Record the losses resulting from credit customers who do not pay their bills.
- Evaluate a company’s management of its receivables by computing and analyzing appropriate financial ratios.
- Match revenues and expenses by estimating and recording future warranty and service costs associated with a sale.
- Reconcile a checking account.
CHAPTER 7 Learning Objectives
- Identify what items and costs should be included in inventory and cost of goods sold.
- Account for inventory purchases and sales using both a perpetual and a periodic inventory system.
- Calculate cost of goods sold using the results of an inventory count and understand the impact of errors in ending inventory on reported cost of goods sold.
- Apply the four inventory cost flow alternatives: specific identification, FIFO, LIFO, and average cost.
- Use financial ratios to evaluate a company’s inventory level.
CHAPTER 8 Learning Objectives
- Describe the various components of employee compensation expense.
- Distinguish between gross pay and net pay, compute various payroll tax items, and prepare the necessary journal entries to record payroll.
- Understand the accounting associated with fringe benefit items such as compensated absences, bonuses and stock options, post-employment benefits, pensions, and post-retirement healthcare benefits.
CHAPTER 9 Learning Objectives
- Identify the two major categories of long-term operating assets: property, plant, and equipment and intangible assets.
- Record the acquisition of property, plant, and equipment through a simple purchase as well as through a lease, by self-construction, and as part of the purchase of several assets at once.
- Compute straight-line and units-of-production depreciation expense for plant and equipment.
- Record the discarding and selling of property, plant, and equipment.
- Account for the acquisition and amortization of intangible assets and understand the special difficulties associated with accounting for intangibles.
CHAPTER 10 Learning Objectives
- Use present value concepts to measure long-term liabilities.
- Account for long-term liabilities, including notes payable and mortgages payable.
- Account for finance lease obligations and understand the significance of operating leases that are now included on the balance sheet.
- Account for bonds, including the original issuance, the payment of interest, and the retirement of bonds.
- Use debt-related financial ratios to determine the degree of a company’s financial leverage and its ability to repay loans.
CHAPTER 11 Learning Objectives
- Distinguish between debt and equity financing, and describe the advantages and disadvantages of organizing a business as a proprietorship or a partnership.
- Describe the basic characteristics of a corporation and the nature of common and preferred stock.
- Account for the issuance and repurchase of common and preferred stock.
- Understand the factors that affect retained earnings, describe the factors determining whether a company can and should pay cash dividends, and account for cash dividends.
- Describe the purpose of reporting comprehensive income in the equity section of the balance sheet, and prepare a statement of stockholders’ equity.
CHAPTER 12 Learning Objectives
- Understand why companies invest in other companies.
- Understand the different classifications for securities.
- Account for the purchase, recognition of revenue, and sale of trading and available-for-sale securities.
- Account for changes in the value of securities.
CHAPTER 13 Learning Objectives
- Understand the purpose of a statement of cash flows.
- Recognize the different types of information reported in the statement of cash flows.
- Prepare a simple statement of cash flows.
- Analyze financial statements to prepare a statement of cash flows.
CHAPTER 14 Learning Objectives
- Explain the purpose of financial statement analysis.
- Understand the relationships between financial statement numbers and use ratios in analyzing and describing a company’s performance.
- Use common-size financial statements to compare financial statements across years and between companies.
- Understand the DuPont framework and how return on equity can be broken out into profitability, efficiency, and leverage components.
- Conduct a focused examination of a company’s efficiency by using asset-specific ratios.
- Determine the degree of a company’s financial leverage and its ability to repay loans using debt-related financial ratios.
- Use cash flow information to evaluate cash flow ratios.
- Understand the limitations of financial statement analysis.
The courseware’s materials make teaching financial accounting easier for you and more engaging for students. The following resources are included:
Auto-graded quiz for each chapter
Turnkey assignments
75 lecture slide decks
More than 20 lesson plans
Engaging, author-led video content
Real-world examples
Sample syllabus and course calendars
Cumulative glossary for student reference
LMS integration with Stukent platforms
Financial Accounting Simternship
Financial Accounting Simternship
Take Learning Beyond the Book with a Simternship
The Stukent Financial Accounting Simternship goes beyond your average business simulation, allowing your students to apply the concepts you’re teaching them in a real-world setting. The Simternship helps your students grasp the accounting cycle and the importance of financial statements.
A Simternship helps your students gain experience, master marketable skills, increase their knowledge retention, and yes, even make mistakes in a low-risk environment. It’s a powerful experience that cements learning for a lifetime.
Simternship Scenarios
The Financial Accounting Simternship places students in two scenarios to create a cohesive, powerful learning experience. The first scenario helps students grasp the accounting cycle. The second scenario helps students grasp the importance of financial statements.
In each scenario, students perform job-related tasks in a real-world setting. The settings and storylines help reinforce the learning objectives and help students build marketable accounting skills.
Scenario 1: The Accounting Cycle
The first scenario places your students in the setting described below.
You are trying to save money to pay for college! Rather than spend time selling pest control or security systems or used cars, you decide to take a more adventurous route. You travel to Hawaii to start a business!
You want time on the beach, a relaxing atmosphere, and to make some money to help pay for your education. And hey, if things go well with the business, you might stick with the business and grow it into a profitable, long-term, lifestyle business.
The business involves selling sunglasses and suntan lotion and renting paddle boards and body boards on Kaanapali Beach in Maui. If things go well with your first location, you should be able to expand your locations — we will see.
During this scenario, your students will have a business partner and mentor who advises them, makes decisions, and allows the student to make a limited number of business decisions as well. The emphasis and grading of the simulation are based on how students account for those decisions via journal entries, prepare financial reports, and ultimately make a presentation to the bank for additional funding.
Scenario 2: Financial Statements
The second scenario places your students in the setting described below.
You’re a staff accountant at Carly’s. Carly’s is a retail home goods store with five locations. Carly’s has recently expanded from the original store to five stores in the past 36 months and have allocated staff time to better benchmark themselves going forward.
You will report to the the CFO of Carly’s, Leo Marshall, and be tasked with working on four benchmarks for the business to better understand and assess current business performance.
During this scenario, your students will be presented with problems and asked to properly triage issues culminating with a final report to an investment banker.
Round Descriptions
Scenario 1: The Accounting Cycle
Round 0 – Scenario Set-up
Scenario: The student is introduced to the business opportunity, business partnership, and the overall setting of the simulation.
Round 1 – Pre-revenue Part 1
Scenario: The student is asked to make limited business decisions while others are made for them. The student is introduced to journal entries with a focus on properly accounting for the given transactions. (Pre-revenue)
Record the effects of transactions using journal entries.
Round 2 – Pre-revenue Part 2
Scenario: The student is asked to make limited business decisions while others are made for them. The student is introduced to journal entries with a focus on properly accounting for the given transactions. (Pre-revenue)
Round 3 – Weeks 1-2
Scenario: Business is open and the student must properly account for business activities. As the simulation progresses, the transactions will be more complex.
Round 4 – Weeks 3-4
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 5 – End-of-month Adjustment (Month 1)
Scenario: Student must make month-end entries to ensure financial statements are accurate.
Round 6 – Month 2
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 7 – End-of-month Adjustment (Month 2)
Scenario: Student must make month-end entries to ensure financial statements are accurate.
Round 8 – Month 3
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 9 – End-of-month Adjustment (Month 3)
Scenario: Student must make month-end entries to ensure financial statements are accurate.
Round 10 – Prepare Income Statement & Trial Balance
Scenario: In preparation for scaling the business (bank ask), the student is asked to prepare the needed financial reports.
Round 11 – Evaluate Financial Reports
Scenario: The student evaluates the financial reports in order to measure financial stability and prepare for the bank ask for extended credit.
Round 12 – Pitch to the Bank
Scenario 2: Financial Statements
Round 0 – Scenario Set-up
Scenario: The student is introduced to the position and the company they work for.
Round 1 – Prior Year Comparisons (Two Years Ago)
Scenario: The student is asked to compare Carly’s financial statements across the years. The student will calculate a number of financial ratios using the reports provided.
Round 2 – Prior Year Comparisons (Last Year)
Scenario: The student is asked to compare Carly’s financial statements across years. The student will calculate a number of financial ratios using the reports provided.
Round 3 – Benchmark Against Industry Data
Scenario: The student is asked to compare Carly’s most current year-end financial statements to industry data provided by the CFO who received it from the investment banker. The student will compare the ratios in order to identify potential areas for improvement.
Round 4 – Target/Plan Comparisons
Scenario: The student is asked to compare Carly’s current year financial statements to the target/plan for the year. The student will calculate a number of financial ratios using the reports provided.
Round 5 – Benchmark Against Walmart and Target
Scenario: The student is asked to compare Carly’s most current year-end financial statements to titans within the same industry, Walmart and Target. The student will calculate a number of financial ratios using the reports provided.
Round 6 – Triage Issues
Scenario: The student will finalize the areas of improvement based on the comparable data from all four comparables.
Round 7 – Final Report to Investment Banker
Scenario: Time advances by nine months to see how the identification of problem areas has bettered Carly’s financial ratios. The student finalizes a report to the investment banker.
Round 8 – Simternship Closure
Reflection
Key Learning Objectives
Scenario 1: The Accounting Cycle
ROUND 0 Learning Objectives
Understand the scenario.
ROUND 1 Learning Objectives
Analyze transactions and determine how those transactions impact the accounting equation.
Record the effects of transactions using journal entries.
ROUND 2 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 3 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 4 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 5 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 6 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 7 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 8 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 9 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 10 Learning Objectives
Prepare an income statement.
Complete the closing process in the accounting cycle.
ROUND 11 Learning Objectives
Use the financial reports to evaluate performance.
ROUND 12 Learning Objectives
Scenario 2: Financial Statements
Round 0 Learning Objectives
Understand the scenario.
Round 1 Learning Objectives
Use common-size financial statements to calculate financial ratios.
Round 2 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 3 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 4 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 5 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 6 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 7 Learning Objectives
Understand the relationships between financial statement numbers and use ratios in analyzing and describing a company’s performance.
Round 8 Learning Objectives
The Financial Accounting Simternship places students in two scenarios to create a cohesive, powerful learning experience. The first scenario helps students grasp the accounting cycle. The second scenario helps students grasp the importance of financial statements.
In each scenario, students perform job-related tasks in a real-world setting. The settings and storylines help reinforce the learning objectives and help students build marketable accounting skills.
Scenario 1: The Accounting Cycle
The first scenario places your students in the setting described below.
You are trying to save money to pay for college! Rather than spend time selling pest control or security systems or used cars, you decide to take a more adventurous route. You travel to Hawaii to start a business!
You want time on the beach, a relaxing atmosphere, and to make some money to help pay for your education. And hey, if things go well with the business, you might stick with the business and grow it into a profitable, long-term, lifestyle business.
The business involves selling sunglasses and suntan lotion and renting paddle boards and body boards on Kaanapali Beach in Maui. If things go well with your first location, you should be able to expand your locations — we will see.
During this scenario, your students will have a business partner and mentor who advises them, makes decisions, and allows the student to make a limited number of business decisions as well. The emphasis and grading of the simulation are based on how students account for those decisions via journal entries, prepare financial reports, and ultimately make a presentation to the bank for additional funding.
Scenario 2: Financial Statements
The second scenario places your students in the setting described below.
You’re a staff accountant at Carly’s. Carly’s is a retail home goods store with five locations. Carly’s has recently expanded from the original store to five stores in the past 36 months and have allocated staff time to better benchmark themselves going forward.
You will report to the CFO of Carly’s, Leo Marshall, and be tasked with working on four benchmarks for the business to better understand and assess current business performance.
During this scenario, your students will be presented with problems and asked to properly triage issues culminating with a final report to an investment banker.
Scenario 1: The Accounting Cycle
Round 0 – Scenario Set-up
Scenario: The student is introduced to the business opportunity, business partnership, and the overall setting of the simulation.
Round 1 – Pre-revenue Part 1
Scenario: The student is asked to make limited business decisions while others are made for them. The student is introduced to journal entries with a focus on properly accounting for the given transactions. (Pre-revenue)
Record the effects of transactions using journal entries.
Round 2 – Pre-revenue Part 2
Scenario: The student is asked to make limited business decisions while others are made for them. The student is introduced to journal entries with a focus on properly accounting for the given transactions. (Pre-revenue)
Round 3 – Weeks 1-2
Scenario: Business is open and the student must properly account for business activities. As the simulation progresses, the transactions will be more complex.
Round 4 – Weeks 3-4
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 5 – End-of-month Adjustment (Month 1)
Scenario: Student must make month-end entries to ensure financial statements are accurate.
Round 6 – Month 2
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 7 – End-of-month Adjustment (Month 2)
Scenario: Student must make month-end entries to ensure financial statements are accurate.
Round 8 – Month 3
Scenario: The student continues to account for business activity with an emphasis on properly identifying the accounting entry that will ultimately lead to accurate business financial statements.
Round 9 – End-of-month Adjustment (Month 3)
Scenario: Students must make month-end entries to ensure financial statements are accurate.
Round 10 – Prepare Income Statement and Trial Balance
Scenario: In preparation for scaling the business (bank ask), the student is asked to prepare the needed financial reports.
Round 11 – Evaluate Financial Reports
Scenario: The student evaluates the financial reports in order to measure financial stability and prepare for the bank ask for extended credit.
Round 12 – Pitch to the Bank
Scenario 2: Financial Statements
Round 0 – Scenario Set-up
Scenario: The student is introduced to the position and the company they work for.
Round 1 – Prior Year Comparisons (Two Years Ago)
Scenario: The student is asked to compare Carly’s financial statements across the years. The student will calculate a number of financial ratios using the reports provided.
Round 2 – Prior Year Comparisons (Last Year)
Scenario: The student is asked to compare Carly’s financial statements across years. The student will calculate a number of financial ratios using the reports provided.
Round 3 – Benchmark Against Industry Data
Scenario: The student is asked to compare Carly’s most current year-end financial statements to industry data provided by the CFO who received it from the investment banker. The student will compare the ratios in order to identify potential areas for improvement.
Round 4 – Target/Plan Comparisons
Scenario: The student is asked to compare Carly’s current year financial statements to the target/plan for the year. The student will calculate a number of financial ratios using the reports provided.
Round 5 – Benchmark Against Walmart and Target
Scenario: The student is asked to compare Carly’s most current year-end financial statements to titans within the same industry, Walmart and Target. The student will calculate a number of financial ratios using the reports provided.
Round 6 – Triage Issues
Scenario: The student will finalize the areas of improvement based on the comparable data from all four comparables.
Round 7 – Final Report to Investment Banker
Scenario: Time advances by nine months to see how the identification of problem areas has bettered Carly’s financial ratios. The student finalizes a report to the investment banker.
Round 8 – Simternship Closure
Reflection
Scenario 1: The Accounting Cycle
ROUND 0 Learning Objectives
Understand the scenario.
ROUND 1 Learning Objectives
Analyze transactions and determine how those transactions impact the accounting equation.
Record the effects of transactions using journal entries.
ROUND 2 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 3 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 4 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 5 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 6 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 7 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 8 Learning Objectives
Analyze transactions and determine how those transactions affect the accounting equation.
Record the effects of transactions using journal entries.
ROUND 9 Learning Objectives
Analyze transactions and make adjusting entries at month-end.
ROUND 10 Learning Objectives
Prepare an income statement.
Complete the closing process in the accounting cycle.
ROUND 11 Learning Objectives
Use the financial reports to evaluate performance.
ROUND 12 Learning Objectives
Scenario 2: Financial Statements
Round 0 Learning Objectives
Understand the scenario.
Round 1 Learning Objectives
Use common-size financial statements to calculate financial ratios.
Round 2 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 3 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 4 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 5 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 6 Learning Objectives
Use common-size financial statements to compare and assess financial benchmarks across years and between companies.
Round 7 Learning Objectives
Understand the relationships between financial statement numbers and use ratios in analyzing and describing a company’s performance.
Round 8 Learning Objectives
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About the Authors
Jim Stice
Jim Stice is an emeritus professor of accounting at Brigham Young University, where he spent his career teaching, conducting research, and serving in administrative roles. He’s won numerous teaching awards, served as a visiting professor at INSEAD, and worked in executive education for companies such as IBM and Ernst & Young. Over his 30-year career, Jim has educated thousands of accounting students and professionals in person and has reached millions of learners online.
Kay Stice
Kay Stice is an emeritus professor of accounting at Brigham Young University. He holds a bachelor’s and master’s degree from Brigham Young University and a Ph.D. from Cornell University. He’s taught at top universities around the world and won numerous awards, including the Maeser Excellence in Teaching Award at BYU, which is the university’s highest teaching honor. In his 30 years of teaching, Kay has taught thousands of students in person and millions online.
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