This module is a free, online book that consists of seven problems with worksheets and solutions from Book Boon. Topics covered with these problems include determination of current liabilities for the balance sheet, journal entries to purchase long-term assets using accounts payable and notes payable, the accrual of interest and amortization of discounts on notes payable; the repayment of notes payable; payroll, contingent liabilities, and warranty expense.
To provide students with practice (and self-assessment) understanding the different types of liability transactions relating to purchases of long-term assets using accounts payable and notes payable, the accrual of interest and amortization of discounts on notes payable, payment of notes payable; payroll, contingent losses, and warranties.
Target Student Population:
Introductory financial accounting for the most part (see notes below).
Prerequisite Knowledge or Skills:
Basic understanding of basic accounting concepts with specific reference to liabilities.
Type of Material:
Drill and practice for an open textbook
In-class, Homework, Individual, Team
Access to the pdf.file requires entry of an e-mail address to access.
Evaluation and Observation
The module is clear, demonstrates a core concept grounded in the discipline, is current and relevant, and for the most part is accurate (see concerns below). Use of the problems is also flexible.
The pdf file provides problems that can supplement other problems available for the topics and could be used in and outside of class.
Each problem tests understanding of a specific subset of liability concepts.
Including prepaid and contingent liability situations provides a depth of coverage of the liability section of the balance sheet.
No discussion of the topics exists in this set of materials prior to the problems being presented. One has to read the section of the textbook associated with each topic. As a result, the module is not self-contained.
Concepts are not summarized.
An error exists in the calculation of gross earnings for Problem I.
An error exists in the calculation of the social security tax for J. Hall in Problem 7. No explanation of who is responsible for federal and state unemployment tax has been provided.
Potential Effectiveness as a Teaching Tool
Provides good quality problems affording students the opportunity to review/test their knowledge of a wide variety of liability based questions.
Reinforces concepts progressively and builds on prior concepts.
Easy to write assignments for and is efficient.
Only infers learning objectives by the title of the book, Liabilities and Equity and does not identify prerequisite knowledge.
While most of the content relates to an introductory financial accounting course, the following material should be associated with a more senior financial accounting course: 1) the bank loan scenario in Problem 1, 2) the funding employee health plan in Problem 5, the rule of 78 in Problem 6, and all of Problem 7.
Ease of Use for Both Students and Faculty
The problems would be easy to use following after reading the application sections of a textbook, viewing of videos, or articipating in a class lecture.
The instructions are clear.
They provide a specific set of information that must be used to prepare journal entries, listings of payables, and a schedule calculating employee gross and net wages.
The design of the module is not engaging, visually appealing, interactive, or of high quality.
All of Problem 7 can only be used in the United States. For use in any other country this problem would have to be adapted to the country’s payroll and benefit rules.