AIR Fall 2013

Learning the Accounting for Accounts Receivable and Bad Debts: An Interactive Approach

Students are often confused by the impact and timing of recording transactions and events that affect the net realizable value of accounts receivable and bad debts. This instructional resource uses a comprehensive problem to illustrate an interactive approach of teaching and learning concepts related to accounting for accounts receivable and bad debts in a principles of financial accounting course. Read More…


Critical Thinking Skills and the AICPA Core Competency Framework

In most schools, accounting principles courses are for accounting majors as well as all other business majors. As educators, we want to make sure the accounting majors graduate with the skills they will need in the profession. However, we also want to provide non-accounting majors with the basic accounting knowledge they will need in their future careers. Additionally, we should aspire to improve the critical thinking skills of all students, regardless of major. The AICPA Core Competency Framework (CCF) provides a comprehensive list of the competencies the profession demands of entry-level accountants (AICPA, 2005). The Steps for Better Thinking (SBT) Model (Lynch & Wolcott, 2001) provides a way to assess the critical thinking skills of students in college. These two constructs actually relate to one another, which means that we can provide skill improvement opportunities for all students in accounting principles courses, regardless of their majors. Read More…


Accounting Instructors’ Report, Fall 2013: Table of Contents

The following articles are featured in the Fall 2013 issue of the Accounting Instructors’ Report:   TRENDS
Managing Change Through Continuous Improvement
Belverd Needles, DePaul University   ARTICLES
Critical Thinking Skills and the AICPA Core Competency Framework
Gail Kaciuba, St. Mary’s University Teaching Lean Accounting With A Manufacturing Simulation
Gerald K. DeBusk, University of North Carolina Wilmington
Clay L. Moerland Jr., American Bicycle Group
Lawrence P. Grasso, Central Connecticut State University The Personal Budget: A Value Added Tool for the Managerial Accounting Class
Raymond J. Elson, Valdosta State University   TEACHING CASE
Learning the Accounting for Accounts Receivable and Read More…


Teaching Lean Accounting With A Manufacturing Simulation

Lean Accounting evolved in order to promote goals consistent with the Lean philosophy. It has been accepted by companies for its ability to create accurate, useful, real-time financial data, useable by both managers and line employees. Correspondingly, Lean Accounting is more frequently included as a topic in university management accounting courses. We use a modified version of Peter J. Billington’s airplane manufacturing simulation, “A Classroom Exercise to Illustrate Lean Manufacturing Pull Concepts”, to introduce students to Lean Accounting (Billington, 2004). This teaching note is intended to help the reader run a Lean simulation, develop Lean Accounting Profit & Loss statements, and compare Lean Accounting profits to absorption costing profit. It also analyzes the behaviors encouraged by each method. Read More…


Managing Change Through Continuous Improvement

In a previous Trends article, Belverd Needles identified the changing nature of our students, the educational needs of these students, and the challenges of addressing these needs. Now that the primary factors influencing change and some of the major issues involving them have been identified, how do we go about implementing change? An evolutionary approach that affects the course content, tools, and learning environment offers several advantages. Read More…


The Personal Budget: A Value-Added Tool for the Managerial Accounting Class

Students often need activities to help them process and understand accounting concepts. This is especially true for managerial accounting, a course offered to accounting and nonaccounting (including non-business) majors. One such activity is the personal budget. It’s a simple value-added activity that is used to demonstrate key course concepts such as cost behavior, profit planning, and variance analysis in the managerial accounting course. This paper describes the personal budget exercise and provides accounting instructors with a template for use in their own course. Read More…