Yes, Accounting can be Fun!



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Yes, Accounting can be Fun! Joe Bittner, CPA Director, Education & Professional Development EisnerAmper LLP 2013 NBEA Annual Conference Thursday, April 18, 2013

Joe s Bio 1. Director, Education & Professional Development, EisnerAmper 2. Accounting Instructor, University of Connecticut 3. Education Manager, Federal Reserve Bank of New York 4. Senior Director, Business Programs, NYU SCPS 5. Education Manager, American Institute of CPAs 6. Adjunct Accounting Professor, NYU SCPS & University of Connecticut 7. High School Business Education Teacher, Bristol (CT) Central High School 8. Audit & Tax Associate, Price Waterhouse and Deloitte & Touche 9. BS, Finance & MBA, Accounting, University of Connecticut 10. Born & raised in East Haven, CT; live in NYC

Yes, Accounting can be Fun! Financial Reporting & Analysis Preparing & Using a Balance Sheet and Income Statement Cost-Volume-Profit (CVP) Analysis Financial Literacy

Financial Reporting & Analysis Instructional Strategy: Explain the nature of the business of a company Explain information reported on a Balance Sheet Identify and explain assets, liabilities and equity Explain the relationship between assets, liabilities and equity Explain the information reported on an Income Statement Analyze a company: Net Profit Margin Debt Ratio Operating Cycle (inventory turnover + accounts receivable turnover) Return on Assets Current Ratio (and Working Capital)

Financial Reporting & Analysis Resources: Annual report of a public company AICPA s Takin Care of Business Education Handbook Lesson 1, Financial Statement Analysis: Reading Between the Bottom Lines» Texas Society of CPAs; www.tscpa.org Financial Reporting and Analysis (Gibson) What the Numbers Mean (Marshall, McManus, Viele)

Preparing & Using a Balance Sheet and Income Statement Instructional Strategy: Research careers, education requirements and universities Prepare a personal budget Explain the benefits of a tax-deferred savings plan Prepare a personal balance sheet and income statement

Preparing & Using a Balance Sheet and Income Statement Resources: Personal Budget Connecticut Society of CPAs Me, Myself, My Money (www.ctcpas.org) AICPA s Takin Care of Business Education Handbook» Lesson 3, Budgeting & Forecasting: Forecasting Your Future» Lesson 9, Financial Planning: Tax Laws Can Make You Rich» Lesson 10, Time Value of Money: Timing is Everything» Texas Society of CPAs; www.tscpa.org Personal Balance Sheet and Income Statement Use Excel spreadsheet to demonstrate how transactions impact the accounting equation

Preparing & Using a Balance Sheet and Income Statement

Cost-Volume-Profit (CVP) Analysis Instructional Strategy: CVP Analysis High-low Analysis Sensitivity Analysis Sales Variable costs Contribution Margin Fixed costs = Profit

Cost-Volume-Profit (CVP) Analysis Instructional Strategy: (Selling price Quantity of units sold) (Variable cost per unit Quantity of units sold) Contribution Margin per unit Quantity of units sold Fixed costs = Profit

Cost-Volume-Profit (CVP) Analysis Instructional Strategy: Contribution Margin per Unit = Selling Price Variable cost per Unit 1. (Selling price Quantity of units sold) - (Variable cost per unit Quantity of units sold) - Fixed costs = Profit 2. (Contribution Margin per unit Quantity of units sold) - Fixed costs = Profit 3. (Contribution Margin per unit Quantity of units sold) = Fixed costs + Profit 4. Quantity of units sold = (Fixed costs + Profit) / Contribution Margin per unit

Cost-Volume-Profit (CVP) Analysis Resources: AICPA s Takin Care of Business Education Handbook Lesson 3, Break-even Analysis: Proving the Price is Right» Texas Society of CPAs; www.tscpa.org Managerial Accounting (Garrison) Managerial Accounting (Hilton)

Financial Literacy: Having the knowledge and skills to make informed business and personal finance decisions. Instructional Strategy: Make it personal student-centered approach to developing the knowledge and skills to make informed business and personal finance decisions through the study of accounting and accounting-related topics Resources: Connecticut Society of CPAs Me, Myself, My Money (www.ctcpas.org)

Financial Literacy: Having the knowledge and skills to make informed business and personal finance decisions. Resources: Each of the six modules contains learning objectives, two to four lessons (each with multiple student activities), and instructor s solutions. Credit Cards and Your Credit Score Managing Debt Financial Planning Insurance Investments Money and Banking The 18 lesson plans and 47 activities are aligned with the learning standards of the Connecticut Department of Education and the NBEA.

Financial Literacy: Having the knowledge and skills to make informed business and personal finance decisions.

Financial Literacy: Having the knowledge and skills to make informed business and personal finance decisions.

Yes, Accounting can be Fun! Financial Reporting & Analysis Preparing & Using a Balance Sheet and Income Statement Cost-Volume-Profit (CVP) Analysis Financial Literacy

Yes, Accounting can be Fun! Joe Bittner, CPA Director, Education & Professional Development EisnerAmper LLP 2013 NBEA Annual Conference Thursday, April 18, 2013