This module is lesson 3 of 8 available from simplestudies.com. It consists of an online lecture with examples illustrating and explaining accounting for deferrals. Events recorded in the accounting system, financial statement preparation, and costs vs. expenses are among the topics addressed.
To learn about deferrals of expenses and revenues,as well, as how to record and report them.
Target Student Population:
College Lower Division or High School students completing a principles of accounting course.
Prerequisite Knowledge or Skills:
Basic accounting terms and concepts.
Type of Material:
Written lecture material with examples and explanations.
Individual use as homework.
Evaluation and Observation
This module provides a complete lecture on accounting for deferrals. Coverage is clear, concise, and for the most part accurate. The effects of transactions are presented in terms of increasing and decreasing accounts rather than a debit and credit approach. The amount of content is adequate. Prior unit concepts are summarized to enhance the flow and integration of concepts. The financial statements even include the Cash Flow Statement, which is sometimes omitted at this stage in learning accounting. Links to a glossary of accounting terms has been incorporated into the text.
Capital contributions by an owner to start a business as well as the acquisition of land are generally not considered deferral transactions.
Potential Effectiveness as a Teaching Tool
Learning objectives are identified. The module builds on prior concepts and demonstrates relationships between concepts. The following topics are covered in detail: deferrals and accounting allocation, unearned revenue and revenue recognition, historical cost, book (carrying) value of fixed assets, depreciation expense, and prepayments (prepaid expenses. The unit would be a nice alternative to an expensive textbook for those who prefer the user approach to accounting.
The module is just written text material, although it does include illustrations throughout and one graphic. No hands-on practice exercises have been included.
Prerequisite knowledge is not specified.
Instructors who prefer the traditional approach (debits and credits) to teaching the content, probably will not care for this module.
Ease of Use for Both Students and Faculty
This module is easy to use and provides a solid explanation with very good illustrations of accounting for deferrals. Content is well organized with navigation features that enable jumping to any topic desired.
The module could be more engaging, visually appealing, and interactive. It consists of 9 pages of text that very likely will not hold students' attention for long. Advertisements interspersed within the text are distracting. Font size is also quite small.