1. Dr. Maureen Flores School of Accountancy Sorrell College of Business Troy University Troy, Alabama Using Blooms Taxonomy to Promote Higher Level Thinking and Learning in Introductory Accounting Courses

2. Objective Give students a better understanding of creating, reading, and analyzing financial statements that goes beyond basic memorization of introductory accounting concepts Intended Audience Students in Introductory Principles of Accounting Courses

3. Student Expected Outcomes Student is expected to gain a better understanding of financial statement accounts and the relationships between types of accounts and the different financial statements. Student is expected to be able to read an annual report and be able to identify the different sections. Student is expected to meaningfully contribute to the class discussion concerning topics related to required chapters of the text. Student is expected to analyze and evaluate various concepts from the text.

6. Remember: Student can produce basic information. Student can repeat information straight from the textbook. Understand: Student can understand concepts from the text. Student can explain concepts in their own words. Apply: Student will be able to apply the information from the text. Student can apply concepts to outside source. Student can problem solve. Analyze: Student can break down different concepts within the material. Student can classify and categorize. Student can compare and contrast. Evaluate: Student will be able to form an opinion. Student will be able to explain their reasoning. Create: Student will be able to connect one concept to another. Student can adapt the concepts from the book. Student Level of Learning Based on Bloom’s Taxonomy

7. Concept: Role of Accounting in Business, Accounting Equation with Account Types Verbs: count, define, describe, identify, label, name, recall, recite Student Learning Objective: *Describe the nature of a business and the role of accounting in business *State the accounting equation and define each element of the equation *Describe the characteristics of an account and a chart of accounts Application: Pick a company and research the annual report Outcome: Student’s first exposure to annual report creates motivation to learn about accounting as it relates to their life. Goal: Recall information; Be able to list and name information

8. Concept: Understand and explain the steps in the accounting cycle Verbs: Conclude, Demonstrate, Discuss, Explain, Restate, Summarize Student Learning Objective: *Articulate the nature of the adjusting process * Discuss examples of accounts needing adjustment Application: Read through the annual report and post in the DB examples of adjusting entries your company performs. Provide information as to why accounts need adjustment utilizing the notes from the annual report. Outcome: By restating concepts from the textbook and comparing said concepts to their company, students gain a better understanding of the accounting cycle. Goal: Understand, Explain, and Discuss

9. Goal: Recall information; Be able to list and name information Concept: Examine financial information and use it to illustrate financial conditions Verbs: Change, Choose, Compute, Select, Show, Transfer Student Learning Objective: *Examine the flow of financial information through the financial statements *Complete ratio analysis to examine the liquidity and solvency of company Application: Use the financial data from the annual report to report the data that ties the statements together. Perform calculations for working capital and current ratio. Outcome: Students learn to apply and illustrate accounting concepts in a real world situation.

10. Goal: Investigate, identify, and explain Concept: Identify examples of specific accounting accounts and related principles Verbs: Classify, Compare, Contrast, Differentiate, Outline, Separate Student Learning Objective: *Identify and categorize accounts and procedures discussed in the text. *Specific accounts and procedures See more specific examples in sample assignments Application: Identify selected company’s notes concerning the treatment of merchandise, depreciation, allowance for bad debt, methods to account for inventory, long-term assets, current liabilities, and stock Outcome: Students learn to identify and explain concepts to gain a better understanding.

11. Concept: Assess the financial health of a company and assess possible trends over periods of time Verbs: Create, Design, Develop, Compose, Construct Student Learning Objective: *Evaluate financial statements and use pertinent information to rate companies * Assess various accounting ratios with application Application: Be able to provide feedback to stockholder’s regarding various financial measures. Use financial statement analysis to draw conclusions. Outcome: Students will be able to clearly articulate and apply textbook concepts. Real world application will deepen student understanding. Goal: Decide, rate, and assess

12. Concept: Continue to evaluate, while judging and recommending plan of action. Verbs: Choose, Conclude, Decide Student Learning Objective: *Identify pertinent information in financial statements * Be able to compare based on different accounting methods employed. Application: Students will determine if they would choose to invest in their company. Outcome: Student will be able to read annual reports and make educated decisions based on the information contained therein. Goal: Judging, Recommending, Creating, Comparing

13. Specific Course Application: Chapters Chapter One: Introduction to Accounting and Business Chapter Two: Analyzing Transactions Chapter Three: The Adjusting Process Chapter Four: Completing the Accounting Cycle Chapter Six: Accounting for Merchandising Businesses Chapter Seven: Inventories Chapter Eight: Sarbanes-Oxley, Internal Control, and Cash Chapter Nine: Receivables Chapter Ten: Fixed Assets and Intangible Assets Chapter Eleven: Current Liabilities and Payroll Chapter Thirteen: Corporations: Organization, Stock, Transactions, and Dividends Chapter Fourteen: Long-term Liabilities: Bonds and Notes Chapter Seventeen: Financial Statement Analysis Text: Accounting 24 th Edition Warren, Reeve, Duchac Understand Remember Apply Analyze /Evaluate Evaluate / Create

14. Sample: Assignment One Chapters covered: Chapter One: Introduction to Accounting and Business Chapter Two: Analyzing transactions Related Bloom Goal: Remember Assignment: Pick a company that you would like to learn more about Explain your motivation for picking the company Obtain the annual report for that company Read through the report and note the different section contained List account examples and the attached totals from the annual report to demonstrate your understanding of the five types of accounts. Also include what statement each account is placed.

15. Sample: Assignment Two Chapters Covered: Chapter Three: The Adjusting Process Related Bloom Goal: Understand Assignment Requirements: List accounts that your company might adjust as listed in the text. Provide additional information, if it exists, from the notes to the financial statements, supporting your examples.

16. Sample: Assignment Three Chapters Covered: Chapter Four: Completing the Accounting Cycle Related Bloom Goal: Apply Assignment Requirements: Demonstrate your understanding of the flow of information through the financial statements by identifying the account totals that transfer from one statement to the next Compute working capital and current ratio based on the information from your annual report

17. Sample: Assignment Four Chapters Covered: Chapter Seven: Inventories Related Bloom Goal: Analyzing Assignment Requirements: We will be learning about inventory systems this week. I would like you to look back at the company that you selected. You will be looking at the balance sheet for the inventory information. The balance sheet will give you the numbers for the inventory, but you will have to read through the notes to the financial statements to find the detailed information. Please report back to the class: 1. the company and website link for the annual report 2. what inventory system that they are using (hint: the notes to the financial statements tend to go in order of how the accounts are presented in the statements. You should be able to scroll through until you see the inventory information.

18. Sample: Assignment Five Chapters Covered: Chapter Eight: Sarbanes-Oxley, Internal Control, Cash Related Bloom Goal: Analyzing Assignment Requirements: What does your company classify as cash? Look at your balance sheet and your financial statement notes. Post a brief description about cash and cash equivalencies.

19. Sample: Assignment Six Chapters Covered: Chapter 9: Receivables Related Bloom Goal: Analyzing Assignment Requirements: Students share with the class how your company deals with bad debt and allowance for doubtful accounts. There should be information about the details of this in the notes to the financial statements, specifically, the balance sheet notes.

20. Sample: Assignment Seven Chapters Covered: Chapter Ten: Fixed Assets and Intangible Assets Related Bloom Goal: Analyzing, Evaluating Assignment: Student must replicate their company’s Long-term assets section of the balance sheet. Student must include the notes from the financial statements concerning the long-term assets section in their own words. Students will be required to discuss financial ratios.

21. Sample: Assignment Eight Chapters Covered: Chapter Eleven: Current Liabilities and Payroll Related Bloom Goal: Analyzing, Evaluating Assignment: Student must replicate their company’s current liabilities section of the balance sheet. Student must include the notes from the financial statements concerning the current liabilities section in their own words. Students will be required to discuss selected financial ratios.

22. Sample: Assignment Nine Chapters Covered: Chapter Thirteen: Corporations: Organization, Stock, Transactions, and Dividends Related Bloom Goal: Analyzing, Evaluating, Creating Assignment Requirement: Student must answer the following: 1. Would you buy common or preferred stock and why? 2. Is your company on that you would you chose to invest in? Why? (Please provide a reference to specific areas from your financial statements that helped you makes your decision.) 3. Include related ratios mentioned in the text.

23. Student Initial Feedback Student Comments: “I was better able to understand why I had to take this course. You really need to know some of this stuff if you are going to work in business” “I liked picking my own company. It was easier for me to get motivated when I was looking at something I was interested in.” “I picked the company that I have worked for over the past 10 years. I have learned things about my employer that I never knew before.” “The course was still hard, but this assignment helped me remember stuff from the book. I didn’t have to work so hard to memorize everything”