Lesson Plan 6.3 –Budgeting
Course Title: Accounting II
Lesson Title: Budgeting
Specific Objective: Learn about budgeting as it relates to business.
Performance Objectives:
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List the five principles of budgeting;
Gather information to prepare a budget;
Prepare a budgeted income statement;
Prepare a cash budget and performance report
TEKS: 130.167.c:
6.A-B – process preliminary budget detail; prepare budget reports;
TAKS Correlations: R1, M2, M10
Preparation
Materials Needed:
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Projection system
Glencoe’s Textbook, Chapter 16, and Demonstration Problems
Century 21’s Textbook, Chapter 14.
Accounting software and spreadsheet software.
Sponge/Focus Activity:
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Discuss ways a company can control spending.

Exploring the Real World of Business, in Glencoe’s Textbook
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A possible end of class activity is to give each student a 3 x 5 card and give
them several minutes to answer the following question:
o “What is the most important item you learned today?” Have them turn
in the 3 x 5 card before they leave class. (You can use this activity
whenever you want feedback on what your students learned.)
Lesson Content:
See Glencoe’s Textbook, Chapter 16, or Century 21’s Textbook, Chapter 14.
Here is an outline:
I.
Budgeting
A. What is budgeting?
B. What is a budget?
II.
Planning a budget
A. Develop long-term goals
B. Develop short-term goals
C. Define budgeting responsibilities
D. Establish budgeting guidelines
E. Establish follow-up procedures
III. Preparing a budget
Lesson Plan 6.3 – Budgeting
Copyright © Texas Education Agency, 2011. All rights reserved.
)
ACCOUNTING II
IV.
A. Preparing a budget using the previous year’s amounts
1.
Revenue projections
2.
Expenditure projections
B. Zero-Base budgeting
1.
Preparing revenue projections
2.
Preparing expenditure projections
C. Summarizing the program budget requests
Controlling the budget
A. Budget control
B. Budget adjustments
Teaching Strategies:
Prepare a multimedia presentation explaining budgeting.
Assessment:

For problems you can use Peachtree Accounting from Glencoe, Glencoe
Accounting Software, Century 21 Accounting Software, or a spreadsheet.

From Glencoe’s Textbook
o Guided Practice
 16-1 Applying the Budgeting Process
 16-2 Analyzing a Source Document
 16-3 Calculating Free Balances
o Independent Practice
 16-4 Preparing the Revenue Section of a Budget Request
 16-5 Preparing the Expenditure Section of a Budget Request
 16-6 Preparing the Revenue Section of a Budget Request
Using Zero-Base Budgeting
 16-7 Preparing a Budget Request
 16-8 Preparing a Budget Summary Report
 16-9 Preparing a Revised Budget
o Additional Activities: Using Key Terms, budget, budget adjustment,
budget period, budget summary report, expenditure projections,
free balance, fund, fund accounting, revenue projections, surplus,
zero-base budget; Understanding Accounting Concepts and
Procedures, #2-10; Conducting an Audit with Alex
From Century 21’s Textbook
o Guided Practice
 Work Together: Analyzing a comparative income statement
 On Your Own: Analyzing a comparative income statement
 Work Together: Planning for a budgeted income statement
 On Your Own: Planning for a budgeted income statement.
 Work Together: Planning for a cash budget
 On Your Own: Planning for a cash budget
o Independent Practice
 14-1 Preparing a sales budget schedule and a purchases
budget schedule
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Lesson Plan 6.3 – Budgeting
Copyright © Texas Education Agency, 2011. All rights reserved.
)
ACCOUNTING II
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o
o
o
o
14-2 Preparing a budgeted income statement
14-3 Preparing a cash budget with supporting schedules
14-4 Preparing a budgeted income statement and a cash
budget with supporting budget schedules
 14-5 Preparing a performance report
Additional Activities: Applied Communication, and Cases for
Critical Thinking
Open Notes and textbook Quiz: Study Guide for Chapter
Lesson 2 of Takin’ Care of Business Education Handbook Lesson
2 “Budgeting & Forecasting “Forecasting your Future”
This lesson is also assessed through the Unit Test at the end of the
Unit.
Additional Resources:
Textbooks:
Guerrieri, Donald J., F. Barry Haber, William B. Hoyt, and Robert E. Turner,
Glencoe Accounting Real-World Applications & Connections, Advanced
Course, Fourth Edition, Glencoe McGraw-Hill: New York, New York.
Ross, Kenton E., CPA, Mark W. Lehman, CPA, Claudia Bienias Gilbertson, CPA,
Robert D. Hanson, Century 21 Accounting Advanced, Anniversary Edition,
Thomson South-Western: Mason, OH, 2003.
Takin’ Care of Business, Education Handbook, American Institute of Certified
Public Accountants, 1211 Avenue of the Americas, New York, NY 100368775, www.aicpa.org.
Multimedia:
Century 21’s Teacher Resource CD
Websites:
http://accounting.swpco.com
Lesson Plan 6.3 – Budgeting
Copyright © Texas Education Agency, 2011. All rights reserved.
)
ACCOUNTING II