Development
of an
Advanced Placement
Accounting Course
Dan Deines, Glenda Eichman, Susan Crosson
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Criteria for a New AP Course and Exam
First Accounting Course Workshops
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Kansas Model
Florida Model
Other Best practices…
Michigan Model
Other Stakeholder Venues
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Your Financial or Principles course
CLEP-Financial in and Principles out
NBEA-Achievement Standards
KSU -Deines, D. and E. Valentine, A Career-Neutral Accounting
First Course in Accounting Models
Curriculum, Strategic Finance, (January 2007): 31-39
Department Meeting materials for you to use
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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
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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
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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 Exam
NBEA Standards
KSU Pilot
New Financial Accounting
CLEP Exam
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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
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20–30% General topics
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• Generally accepted accounting
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principles
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• Rules of double-entry accounting/
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transaction analysis/accounting
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equation
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• The accounting cycle
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• Business ethics
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• Purpose of, presentation of, and
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relationships between financial
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statements
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• Forms of business
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20–30% The Income Statement
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• Presentation format issues
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• Recognition of revenue and
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expenses
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• Cost of goods sold
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• Irregular items (e.g., discontinued
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operations, extraordinary items, etc.)
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• Profitability analysis
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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
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I. The Accounting Cycle
Achievement Standard: Complete and explain the purpose of the various steps in the
accounting cycle.
II. The Accounting Process
Achievement Standard: Apply generally accepted accounting principles to determine
the value of assets, liabilities, and owner's equity.
III. Financial Statements
Achievement Standard: Prepare, interpret, and analyze financial statements using
manual and computerized systems for service, merchandising, and manufacturing
businesses.
IV. Special Applications
Achievement Standard: Apply appropriate accounting principles to payroll, income
taxation, managerial systems, and various forms of ownership.
V. Interpretation and Use of Data
Achievement 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.
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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 communitiessuch 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 Professor
114 Calvin Hall
Kansas State University
Manhattan, KS 66506
Phone: 785-532-6038
Fax: 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
What can you do?
•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!