bluuebunny/crossref_metadata_2025 huggingface dataset:
The Ridgely House Venture: Triple Net Commercial Lease/Purchase Case
Authors: Quinn Joseph D. , Smith Kenneth J.
Published: April 2008

This case examines the tax, financial accounting, and governmental reporting consequences of a private Developer's actual purchase, renovation, and transfer of Ridgely House—an historical building in Ridgely, Maryland—to the Town of Ridgely. In short, the Developer purchases the building for $110,000 and incurs $190,000 in renovation costs to convert the property to a Town Hall and Police Station. He then “leases” the property back to the Town under terms and conditions outlined in a lease/purchase agreement (which can be viewed on the Web at http://faculty.ssu.edu/∼kjsmith/ridgely.htm).

The case is constructed from the background information and actual lease/purchase agreement provided by the Developer. The terms of the agreement raise several questions regarding the proper tax and financial accounting treatment of various aspects of the transaction. The Developer (lessor) questions whether the transaction is to be reported for tax and financial-reporting purposes as a rental or a sale, if the property qualifies for a federal historical tax credit, and what net cash flow can be expected from the project. As an optional assignment (at the instructor's discretion), the Town (lessee) questions whether it has entered into an operating or capital lease, how to record the transaction in accordance with Governmental Accounting Standards Board (GASB) guidelines, and what disclosures are required on its Statement of Financial Position.

The case background, key lease/purchase agreement terms, and actual lease/purchase agreement provide the prerequisite material for solving the case requirements. In addition, outside resources (textbooks, online tax and financial accounting web sites, etc.) should be consulted in the process of seeking solutions to the questions posed by the Developer and the Town Commissioners. It is suggested that solutions to the case requirements be presented to the instructor in the form of an Executive Summary with supporting documentation and schedules.
An Assessment Program for Accounting: Design, Implementation, and Reflection
Authors: Stivers Bonnie P. , Campbell Jane E. , Hermanson Heather M.
Published: April 2008

This paper describes an assessment program for the undergraduate accounting degree program at a large, public university and highlights lessons learned in the application of this program. Faculty developed this program and have implemented assessment activities each year since 1993. Prior research has examined different aspects of designing and implementing accounting assessment programs. This paper adds to the literature by offering in-depth, practical advice regarding implementation issues and by providing specific source information for several standardized tests and tools. This program and the lessons learned in implementing it should be of use to faculty who are in the early stages of assessment-program development. This paper presents an overview of the assessment process, a full description of our assessment program, details of assessment methods, examples of the utilization of assessment results, and a recapitulation of lessons learned.
Teaching Intermediate Financial Accounting Using a Business Activity Model
Authors: Catanach Anthony H. , Croll David B. , Grinaker Robert L.
Published: April 2008

This paper describes a creative approach to the instruction of intermediate financial accounting that relies primarily on a business activity model (BAM). Initially funded by an Accounting Education Change Commission (AECC) grant, this curriculum revision is designed to (1) motivate students for their chosen profession, (2) promote their technical competency, and (3) develop in them an expanded set of educational objectives including critical-thinking, communication, and research skills. The BAM emphasizes financial disclosure and technical research as well as those topics commonly found in “traditional” intermediate accounting courses. Working in professional service teams, students mimic the accounting and financial-reporting processes found in the “real world” by conducting analytical reviews, soliciting information from clients, preparing adjusting and correcting entries, and drafting financial statements and notes for a fictitious client company.
The UniCast Company: A Case Illustrating Internal Auditor Involvement in Consulting
Authors: Houston Richard W. , Howard Thomas P.
Published: April 2008

The UniCast Company, a cable television service company, has experienced rapid growth through a combination of aggressive management and acquisitions (UniCast is a fictionalized version of an actual company). This case requires you to assume the role of a staff auditor in UniCast's internal audit department and complete a review of the company's lockbox arrangements. The case emphasizes internal audit's evolving role from a focus on traditional audit tasks (e.g., account balance evaluation and compliance testing) to also performing business consulting projects with the goal of adding value to the organization. You will consider cash management, internal audit's role, the similarities and differences between external and internal audit, and the potential impact of technology and the Internet on cash management. You also will be required to demonstrate report-writing skills and research skills (e.g., library and Internet).
Relating Case Presentation Style and Level of Student Knowledge to Fact Acquisition and Application in Accounting Case Analyses
Authors: Gobeil Jeff , Phillips Fred
Published: April 2008

We examine how the presentation of accounting cases in narrative (i.e., story-based) or expository (i.e., fact-based) style combines with the level of student knowledge to affect two key dimensions of accounting case analyses: acquisition and application of relevant case facts. Results from an experiment with 210 undergraduate students in an introductory financial accounting class indicated that level of student knowledge (measured by course grade) was associated with the acquisition of accounting case facts through a statistically significant main effect. That is, high-knowledge students acquired a greater number of relevant facts from an accounting case than did low-knowledge students. The main effect of case presentation style and its interactive effect with student knowledge on case-fact acquisition were not statistically significant. In a subsequent problem-solving task, the interaction between case presentation style and student knowledge level exerted a statistically significant effect on the application of accounting case facts. Specifically, low-knowledge students were better able to apply case facts when the case was presented in narrative rather than expository style, whereas high-knowledge students performed equally well regardless of case presentation style. Implications of these results for instructors' case-selection decisions are discussed, and directions for future research are outlined.
Helga Havalot: A Case in Corporate Tax Planning
Authors: Reid Mark E.
Published: April 2008

In this case, you are asked to take on the role of a tax professional in a modern professional services (i.e., accounting) firm. Your boss has asked you to develop a plan of incorporation for one of your clients, who has decided to switch from a sole proprietorship to a C corporation. The client has four assets that would be transferred to the corporation: cash, equipment, building, and land. You must determine how to transfer the assets to the corporation, as well as other matters (how much salary the corporation should pay the client, etc.), keeping in mind that the goal is to maximize the client's after-tax return by minimizing the client's tax liability.
An ABC Simulation Focusing on Incentives and Innovation
Authors: Drake Andrea , Haka Susan F. , Ravenscroft Sue P.
Published: April 2008

Current textbooks advocate activity-based costing (ABC) because it provides more detailed information on resource usage, leading to better cost control and reengineering of production processes. However, there is often little attention paid to how other organizational control features can affect the use of the information provided by ABC systems. This active learning simulation demonstrates that incentives can have a significant impact on how workers use ABC information to manage costs and innovate a production process. The simulation involves two student teams that are furnished with identical ABC cost driver information and either a tournament- or group-based incentive structure. The teams simulate a factory environment by creating products using a simple manufacturing process, while the remaining students observe the process and record differences in communication, innovative activity, and resulting profitability. The teams' outcomes under the two separate incentives illustrate the interaction of a firm's cost system with its incentive system. Typically, we find that more communication occurs among team members, more team-based innovations are created, and profit is higher under group incentives. We conclude that the use of ABC, without consideration of employee incentives, may not result in the desired cost control and process reengineering benefits. In this simulation, students are directly involved in providing the data, so they find the inferences drawn to be compelling.
The Role of Supplemental Instruction in the First Accounting Course
Authors: Jones Jefferson P. , Fields Kent T.
Published: April 2008

This study investigates empirically the role of supplemental instruction (SI) as a means of enhancing student performance in the first accounting course. SI is a proactive educational intervention program that targets traditionally “high-risk” courses and employs collaborative learning techniques emphasizing learning strategies and critical-thinking skills. This emphasis on “learning to learn” has been advocated by the Accounting Education Change Commission (AECC) as a goal of the first accounting course.

ANCOVA-based results from 1,359 students in nine sessions of Principles of Accounting indicate that SI was effective at increasing academic performance; after controlling for self-selection bias, participation in both voluntary and mandatory SI sessions was found to be positively associated with the total points earned in the course. Additionally, a step pattern is observed in the increased performance for both the voluntary and mandatory attendance phases of the study, indicating that the level of SI attendance may play a role in the benefits obtained. The implications of this analysis for the accounting curriculum are addressed.
A Linear Programming Framework for Flexible Budgeting and Its Application to Classroom Teaching
Authors: Yahya-Zadeh Massood
Published: April 2008

Accounting educators and practitioners are well aware of the importance of increased competencies in analytical areas. In response to this need, authors of management accounting textbooks typically offer brief introductions to linear programming (LP), regression analysis, and decision theory. Most textbooks introduce LP in the context of optimal product-mix decisions. However, it is possible to incorporate LP into the discussion of other accounting topics, such as product costing and pricing, and financial and operational budgeting. (For a pioneering article on the subject of integrating activity-based costing and the theory of constraints, see Kee [1995], who applies integer programming to a numerical example in a fashion similar to what is done in this article.)

The paper demonstrates a method of incorporating LP into flexible budgeting and variance analysis. By incorporating production and market constraints into budgeting and variance analysis, the proposed method resolves some of the weaknesses of traditional flexible budgeting and offers a framework for integration of marketing and operations factors into accounting procedures. More specifically, the paper offers a revised definition of the flexible budget and a new procedure for determining flexible budget direct cost variances, overhead cost variances, and revenue variances. Further, this paper introduces a method of incorporating variance analysis into the theory of constraints and offers alternative measures of controlling throughput and operating expenses to companies implementing it.
Integrating Profit Variance Analysis and Capacity Costing to Provide Better Managerial Information
Authors: Balakrishnan Ramji , Sprinkle Geoffrey B.
Published: April 2008

We present a framework for integrating profit variance analysis and capacity costing to provide better managerial information. The framework expands traditional variance analysis to incorporate planned and unplanned changes in inventory levels and the use of practical capacity to determine overhead rates. The framework has practical value because effective cost management and performance evaluation require ascertaining the costs (effects on profit) associated with capacity and the manner in which it is being used. Pedagogical value stems from connecting concepts underlying the choice of a denominator volume to set overhead rates, the profit effects of inventory changes, and variance analysis. By virtue of its generality, the framework enhances the value of capacity costing and profit variance analysis for management planning and control.
Using Hypertext in Instructional Material: Helping Students Link Accounting Concept Knowledge to Case Applications
Authors: Crandall Dickie , Phillips Fred
Published: April 2008

We studied whether instructional material that connects accounting concept discussions with sample case applications through hypertext links would enable students to better understand how concepts are to be applied to practical case situations. Results from a laboratory experiment indicated that students who learned from such hypertext-enriched instructional material were better able to apply concepts to new accounting cases than those who learned from instructional material that contained identical content but lacked the concept-case application hyperlinks. Results also indicated that the learning benefits of concept-case application hyperlinks in instructional material were greater when the hyperlinks were self-generated by the students rather than inherited from instructors, but only when students had generated appropriate links. When students generated inappropriate concept-case application hyperlinks in the instructional material, the application of concepts to new cases was similar to that of other students who learned from the instructional material that lacked hyperlinks.
Equity Method Accounting and Intercompany Transactions
Authors: Chasteen Lanny G.
Published: April 2008

In their consolidated statements chapters, most advanced accounting texts include a presentation of the “full” or “complete” equity method from the standpoint of the parent company. Under this method, the parent company adjusts its accounts for intercompany transactions with the subsidiary, in addition to accounting for its share of the subsidiary's net income and dividends (the “simple” equity method) and for differences between the price paid and its share of the underlying book value of the subsidiary (the “partial” equity method). In these texts, many entries made by the parent company to adjust its accounts for unrealized profits on intercompany transactions would require modification if the parent issued “parent only” statements, or if the subsidiary was not consolidated (or an investor/investee relationship instead of a parent/subsidiary relationship existed).

The purpose of this paper is to discuss and illustrate parent/investor accounting for these intercompany transactions when the parent/investor uses the full equity method, but does not consolidate. Although the advanced texts provide the correct consolidating working paper techniques and resulting consolidated statements, the parent company's need to issue “parent only” statements (a one-line consolidation) makes these issues important. This paper's modified approach is also important regarding an investor/investee relationship in which the investor has significant influence, but not control, over the investee. The paper could be useful for students in advanced accounting courses or in intermediate accounting courses where the equity method is introduced and covered in some detail.
ShoppingWithoutDropping.com, Inc.
Authors: Peters Michael F. , Shaw Kenneth W. , Thompson Robert B.
Published: April 2008

This case, based on the activities of a fictional online grocery shopping and delivery service startup, introduces beginning M.B.A. students to financial accounting. The case write-up provides cash inflows and outflows and other detailed information about the firm's first three years of operations, which include sizable expenditures to develop customer order-entry software. Using this information, you are required to prepare comparative accrual-basis financial statements and to explore the impact of alternative accounting treatments on these financial statements for software development expenditures. The purpose of this case is to provide you with an appreciation for financial statements as a device for communicating the firm's financial position and performance, to illustrate some of the problems and ambiguities that arise in implementing accrual accounting, to expose you to the interpretation of actual accounting standards, and to introduce you to the use of historical financial statements in predicting future earnings.
The 150-Hour Requirement and Changes in the Supply of Accounting Undergraduates: Evidence from a Quasi-Experiment
Authors: Boone Jeff P. , Coe Teddy L.
Published: April 2008

The number of accounting graduates has declined sharply following the near universal adoption of the 150-hour requirement for licensing and as a condition for membership in the American Institute of Certified Public Accountants (AICPA). This decline has led many observers to conclude that the 150-hour requirement was a mistake. Our study investigates the extent to which the 150-hour requirement (rather than other causes) is responsible for the decline in the number of accounting graduates during the 1990s. We document that approximately 38 percent of the decline can be attributed to the requirement. The other 62 percent of the decline remains unexplained. Our study underscores the importance of considering other factors such as noncompetitive compensation, unattractive working conditions, inappropriate student counseling, and inadequate curriculum among others when trying to understand the decline in accounting enrollments.
No, the Sky Is Not Falling: Evidence of Accounting Student Characteristics at FSA Schools, 1995–2000
Authors: Nelson Irvin T. , Vendrzyk Valaria P. , Quirin Jeffrey J. , Allen Robert D.
Published: April 2008

This article presents the most recent results of an ongoing, longitudinal study of characteristics of accounting students conducted by the Federation of Schools of Accountancy (FSA). Surveys were administered to seniors and Mastera^€™s students at FSA member schools in the United States in 1995 and again in 2000. Data regarding student characteristics in 1995 and 2000 are presented. Specifically, the study contains evidence pertaining to student quality, future educational plans, career plans, plans for professional certification, extracurricular involvement, attitude toward the 150-hour requirement, and various demographic dimensions.

The results of the survey do not coincide with those of other studies that have reported a decline in the quality of accounting students. On the contrary, our findings suggest that the quality of accounting students is not decreasing. Further research is necessary to more fully understand these contradictory findings and the direction and magnitude of any changes in student quality.

Other findings of this study include a reversal in the gender mix of graduate students, with females now comprising the majority. More graduate students are pursuing their studies full-time. The average age of students is declining. More accounting students are interested in taking the Certified Public Accountant (CPA) exam and pursuing careers in public accounting, while interest in the Certified Management Accountant (CMA) exam and in pursuing careers in industry are declining. Both seniors and Master's students indicate a very high level of support for five or more years of college education for the CPA. Student involvement in internship programs has nearly doubled since 1995, while involvement in extracurricular organizations has dropped. These results are relevant to many currently debated topics in accounting education—including the effects of the implementation of the 150-hour rule in many states.
Československá Obchodní Banka, a.s.: Applying Business Risk Audit Techniques in an Emerging Market Economy
Authors: Ballou Brian , Knechel W. Robert
Published: April 2008

The case involves Československá Obchodní Banka, a.s. (ČSOB or “the bank”), which was the third largest bank in the Czech Republic in 1997 when the case initially takes place. The case is based on publicly available information relating to ČSOB at a time when the bank was emerging from the state-owned environment of the former Communist country of Czechoslovakia. You will serve in the role of an auditor who is trying understand how to assess the fairness of financial information related to one business process of the entity, based, in part, on the effectiveness of the bank in carrying out its strategy and, in part, on the performance of the business process. This case is designed to provide you with an opportunity to apply important aspects of a business risk audit approach similar to what is utilized to some extent by all major international accounting firms (e.g., Lemon et al. 2000; the Joint Working Group [JWG] Report 2000) in a unique business setting. The requirements of the case also involve assessing the impact on the audit of the bank from privatization by a foreign investor.
Earnings Quality Assessment by a Sell-Side Financial Analyst
Authors: Kamp Bart
Published: April 2008

The paper presents an instructional case on earnings quality. The case is based on a real-life financial analyst's report on the acquisition of the U.S. publisher CCH by the Dutch publisher Wolters Kluwer. Although the analyst believed that CCH was a sound investment, he downgraded his buy recommendation on Wolters Kluwer because of the deterioration of earnings quality, caused by a seemingly unusual accounting method for restructuring costs following the acquisition. The questions for discussion address the differences between management and analysts in their preferred earnings patterns, the impact of goodwill accounting on earnings quality, the backgrounds and rationales for the earnings adjustments the analyst made, and whether cash flow accounting would solve the problem.
Zar, Inc.: A Case in Earnings Quality
Authors: Martin Jimmy W.
Published: April 2008

Zar, Inc., a high-tech company, has recently experienced turnover in its CEO and CFO positions. Zar, like other firms in its industry, is undergoing a down year due to the declining economy. Thomas Brown, who has recently been hired as the CFO, quickly realizes that there is little he can do to avoid the firm's first loss in many years. However, Thomas also understands that there are things that he can do to pave the way toward greater profits in the future. You are invited to listen in on three separate conversations that the CFO has with the CEO, the firm's audit committee, and finally with Zar's independent auditor. After hearing each conversation, you will be asked to evaluate the CFO's ideas as well as those of other parties to the dialogue. Some of the questions are rather straightforward and can be answered by recalling or researching specific accounting standards. Other questions are more open-ended and will require your best judgment based on the facts given in the case. Some questions may require you to provide additional information before making a definite decision. All of the scenarios focus on earnings quality and should enhance your understanding of this critical and controversial issue that pervades financial reporting today.
Global Electronics, Inc.: ABC Implementation and the Change Management Process
Authors: Brewer Peter C. , Juras Paul E. , Brownlee E. Richard
Published: April 2008

Descriptions of activity-based-costing (ABC) systems have become a standard part of managerial accounting texts. While ABC implementation issues are the focus of a number of articles, these issues are often not addressed in a typical textbook. This case is designed to familiarize you with the behavioral and technical variables that can aid or impede successful ABC implementation. Anderson's (1995) factor-stage model provides a template to organize the discussion of ABC success factors. In this case, you will be cast in the role of a business consultant. You are asked to synthesize the case study's key “change management” insights into a report that could be shared with co-workers in an intranetbased knowledge management system. In addition, you may be expected to prepare a formal presentation of the report for your peers.
Dickinson Technologies, Inc.: Assessing Control Environment and Fraud Risk
Authors: Agoglia Christopher P. , Brown Kevin F. , Hanno Dennis M.
Published: April 2008

This instructional case provides you an opportunity to perform realistic audit tasks using evidence obtained from an actual company. Through the use of engaging materials, the case helps you to develop an understanding of the control environment concepts presented in SAS No. 78 (AICPA 1995), Consideration of Internal Control in a Financial Statement Audit, and fraud risk assessment presented in SAS No. 99 (AICPA 2002), Consideration of Fraud in a Financial Statement Audit. This case involves making a series of fraud risk assessments based on company background information and a detailed and realistic control environment questionnaire, which provide you a context that makes the often abstract concepts relating to control environment and fraud risk assessment more concrete.
Relevance, Reliability, and the Earnings Quality Debate
Authors: Entwistle Gary M. , Phillips Fred
Published: April 2008

These instructional materials are designed to elicit debate about the primary accounting qualities of relevance and reliability, and to encourage you to consider how these qualities are linked to the debate over earnings quality. The case material comprises two narrative essays, which elicit divergent views about relevance and reliability, and several discussion questions. You will use these essays and discussion questions as the foundation for a discussion and building a deeper understanding of earnings quality, through extensive inquiry of fundamental financial accounting concepts.
Developing, Marketing, Distributing, and Supporting an Activity-Based Costing Decision Support System for Schrader Bellows
Authors: Smith Kimberly J.
Published: April 2008

In this project, you will develop a database system that allows your clients to model different activity-based costing allocation schemes to calculate product costs. You will also develop a website to market, distribute, and support your system. You will “sell” your system to actual clients, and you will provide user support while the system is in use.
Garbage In, Garbage Out Waste Disposal Incorporated: An Audit Case
Authors: Ragothaman Srinivasan C. , Wilcox William , Davies Thomas L.
Published: April 2008

Waste Disposal Incorporated (WDI) became a major player in both the domestic and international trash collection industries during the late 1990s by aggressively acquiring a large number of local haulers. The company also diversified into recycling, water treatment, energy, power, and lawn care. This rapid expansion initially resulted in substantial profits and a skyrocketing stock price for WDI. The financial market's desire for continued growth put intense pressure on the company to meet higher profit expectations. Increased government regulation of the waste industry and growing competition from smaller garbage haulers hindered WDI's ability to meet those expectations. When extensive cost-cutting measures failed to achieve their desired results, WDI's management turned to other strategies to keep the company at the top of the industry.

In this case, you will follow Jane Sweeny, an audit manager employed by Alfred Peterson LLP, as she completes her duties as manager of the WDI 1999 year-end audit. Included in these duties is a review of the financial records, management's accounting practices, and other relevant details of WDI's audit. The review raises some doubts about the reasonableness of WDI's financial statements in Jane's mind. Jane also discusses her concerns with Peterson's engagement partner and the WDI controller.
To Tell or Not to Tell: An Auditing Case in Ethical Decision Making and Conflict Resolution
Authors: Keim Mary Thomas , Grant C. Terry
Published: April 2008

This case requires you to resolve a fictitious yet realistic ethical dilemma as you assume the role of audit manager in a large, national CPA firm. You will be presented with a scenario whereby you learn from the CFO of Bell Manufacturing, an audit client, that the CFO entered the United States and worked a number of years under false pretenses for the audit client while he was an illegal alien. Although the CFO recently obtained U.S. citizenship, subsequent audit work revealed that Bell Manufacturing failed to obtain the documents required under federal law to certify his eligibility for employment. Before addressing specific case requirements, you will be introduced to a primer on professionalism and ethical decision making in an audit environment. Case requirements first ask you to establish a baseline position by outlining your initial reaction regarding the impact of this information on your auditor responsibilities. You will then be asked to electronically search the authoritative literature covering illegal acts by a client, as well as standards on fraud and the Code of Professional Conduct. After researching the issue, you will be asked to write a memo to the audit partner detailing your recommendation for resolution of this issue. Completion of this case will contribute to development of your ethical, analytical, research, and communication skills, better preparing you for practice and the new CPA exam.
An Inventory of Support Materials for Teaching Ethics in the Post-Enron Era
Authors: Thomas C. William
Published: April 2008

This paper presents a “Post-Enron” annotated bibliography of resources for accounting professors who wish to either design a stand-alone course in accounting ethics or who wish to integrate a significant component of ethics into traditional courses across the curriculum. Many of the resources listed are recent, but some are classics that have withstood the test of time and still contain valuable information. The resources listed include texts and reference works, commercial books, academic and professional articles, and electronic resources such as film and Internet websites. Resources are listed by subject matter, to the extent possible, to permit topical access. Some observations about course design, curriculum content, and instructional methodology are made as well.
A Note on Ethics Educational Interventions in an Undergraduate Auditing Course: Is There an “Enron Effect”?
Authors: Earley Christine E. , Kelly Patrick T.
Published: April 2008

In light of recent accounting scandals and the ensuing “crisis in confidence” facing the public accounting profession, there is a new challenge to accounting educators: how to effectively incorporate ethics into accounting courses, and increase the moral reasoning abilities of their students. Providing accounting students with the ability to reason effectively with respect to moral dilemmas may help to minimize future judgment errors in accounting and auditing settings.

This article describes several different educational interventions that were adopted in an undergraduate auditing course. Students' moral reasoning was assessed both at the beginning and the end of the course to determine whether their moral reasoning scores improved based on the interventions. This was done over two semesters: one occurring in 2001 (“pre-Enron”), and one occurring in 2002 (“post-Enron”). Accounting context-specific scores were collected in both semesters (using Thorne's [2000] Accounting Ethical Dilemma Instrument [AEDI]), and general moral reasoning scores (Rest's [1979] Defining Issues Test [DIT]) were also collected in the post-Enron semester. Results indicate increases in AEDI scores, which were robust over both semesters. There was no corresponding increase in DIT scores, which is consistent with previous research; however, students' DIT scores were not significantly different than AEDI scores, which is contrary to the findings of Thorne (2001). In addition, the educational interventions appear to be equally effective in both the pre-Enron and post-Enron semesters, indicating the absence of an “Enron effect.”
Exposing Accounting Students to Multiple Factors Affecting Ethical Decision Making
Authors: Radtke Robin R.
Published: April 2008

This learning exercise describes one possible method to engage students in discussion about ethical issues. It focuses on recognition of ethical issues, professionalism, and individual differences in ethical orientations. The goal of this learning exercise is to stimulate discussion and resolution of ethical dilemmas among groups with heterogeneous ethical orientations. It consists of four sections. First, the Ethics Position Questionnaire is introduced as a means of classifying students based on their ethical orientation. Second, evaluation of what constitutes an ethical dilemma is explained. Third, how the concept of professionalism affects ethical decision making is discussed. Fourth, breaking students into groups with heterogeneous ethical orientations should stimulate lively discussion of ethics vignettes. Completion of this learning exercise should make students aware of several factors that impact ethical decision making and allow them an opportunity to discuss ethical issues with students who have different ethical orientations.
Using Games to Enhance Student Understanding of Professional and Ethical Responsibilities
Authors: Haywood M. Elizabeth , McMullen Dorothy A. , Wygal Donald E.
Published: April 2008

Given recent corporate scandals, the credibility of the accounting profession has been called into question. In order to restore public trust, accounting educators need to devise ways to convey the importance of ethics in our profession to our students. An alternative approach to using a traditional lecture to teach ethics is to use games. The purpose of this paper is to introduce a game strategy to teach ethics and professionalism to students. Using games makes learning more fun and also helps to maintain student interest and involvement in the learning process. Student feedback has been positive and encouraging on the use of this format to teach ethics and professional responsibilities.
Putting the Clock Back: MicroStrategy, Inc.
Authors: Williams Patricia A. , Koch Bruce S.
Published: April 2008

MicroStrategy, Inc. was one of the high-tech “darlings” of Wall Street during the stock market boom of the late 1990s. After its initial public offering (IPO) in 1998, revenue and earnings increased steadily and substantially year after year. By early March 2000, the company's stock price had soared to $333 per share. Nonetheless, there was at least one financial research group that questioned whether MicroStrategy's performance justified its high market valuation. Based on publicly available information at the time, you are asked to identify “red flags” (i.e., warnings) of possible problems with the company.
Delta's New Song: A Case on Cost Estimation in the Airline Industry
Authors: Dikolli Shane S. , Sedatole Karen L.
Published: April 2008

This case provides the opportunity to use various empirical techniques (i.e., high-low method, simple regression, and multiple regression) in the estimation of cost functions. The case uses the airline industry as the setting for this analysis and, in particular, focuses on the ef forts of Delta Airlines to plan for salaries, the cost category that dominates its income statement. The case provides the data and the opportunity to learn the details of cost function estimation, but more importantly, it provides a rich setting in which issues related to the interpretation of these cost functions can be discussed. Finally, the entry of Delta into the low-cost carrier segment with its formation of Song provides a unique opportunity to think about how the cost function of an established full-service airline compares to that of a low-fare startup. Data from successful newcomer JetBlue is used to illustrate these differences. More generally, the case shows how the use of historical costs and cost estimation techniques can facilitate decision making about entry into new product markets.
As Easy as ABC
Authors: Anthony Joseph H.
Published: April 2008

The case is intended to introduce you to the concepts of contingent liabilities and the role of estimation in financial accounting and reporting. The case is based on an actual promotion offered by ABC Warehouse, a large regional electronics and appliance discount retailer.
Utilizing Service-Learning in Accounting Programs
Authors: Still Kelley , Clayton Penny R.
Published: April 2008

This paper discusses the use of service-learning in accounting curriculums as a tool for enhancing learning and student performance in the classroom by addressing the call for accounting education to move beyond “number crunching” to critical analysis and problem solving. First, the paper reviews the educational research supporting the enhanced learning that takes place with service-learning. Next, the link between service-learning outcomes and accounting education objectives is discussed. Additionally, specific examples of service-learning projects successfully implemented in auditing (with evidence of improved performance) and governmental/nonprofit accounting courses are presented. The projects themselves, as well as the administrative tasks required to implement them, are discussed in detail. The concepts presented can be applied to other accounting and/or business classes.
Course-Embedded Assessments for Evaluating Cross-Functional Integration and Improving the Teaching-Learning Process
Authors: Ammons Janice L. , Mills Sherry K.
Published: April 2008

Within its broad business perspective competency, the AICPA indicates that schools should evaluate the extent to which students are able to apply crossfunctional academic training. This paper describes an effort at one university to assess students' development of a cross-functional view of business. Based on our experiences with iterative revisions in the assessment process over four years within a single course, this paper offers a case study of the process of defining a competency, specifying intended learning outcomes, selecting course-embedded assessment methods, evaluating the results, and using that information to guide changes in the teaching-learning process. In addition to addressing some important dimensions of common techniques used to assess an individual student's learning, this article also illustrates the use of scoring rubrics in the assessment process. This paper is relevant not only to those who are interested in cross-functional integration, but also to accounting educators who are interested in assessment and assurance of learning practices in courses that are not integrative in nature.
Empirical Evidence on the Relative Efficiency of Worked Examples versus Problem-Solving Exercises in Accounting Principles Instruction
Authors: Halabi Abdel K. , Tuovinen Juhani E. , Farley Alan A.
Published: April 2008

This study tested the relative efficiency of teaching material presented in the worked examples form of instruction compared to problem-solving exercises. Tests were also conducted to determine if subjects' prior exposure to accounting instruction affects results. Teaching materials were developed in Computer-Based Learning (CBL) format for one introductory accounting topic completed by 93 subjects. Response measures included test performance, learning effort, and instructional efficiency consisting of the combined measured performance and learning effort. The study results indicate that worked examples were more efficient than problem-solving exercises for students with no prior knowledge of accounting, while being equally efficient for those with prior knowledge.
Calvados—A Business Game for Your Cost Accounting Course
Authors: Hoffjan Andreas
Published: April 2008

Conventional computer-assisted business games are often too complex for university teaching, require too much preparation, and are very time consuming. For these reasons, they are generally only offered parallel to other courses. This article introduces a short business game called Calvados, which can be played without computer support. In terms of content and length, the game can be integrated into the limited time frame of a cost accounting course. As an example, the business game uses the production of French apple brandy and considers relevant costs, opportunity costs, and, in particular, the determination of the optimal internal transfer price. In order to make the use of Calvados as practical as possible, a detailed description of the game and teaching assignments is provided in the article. In addition, the overall arithmetical solution to the tasks dealt with in the business game is introduced using the Lagrange approach.
Helecom Communications: Considering Fraud Risk on an Engagement before and after Analyzing a Key Business Process
Authors: Ballou Brian , Mueller Jennifer M.
Published: April 2008

Helecom Communications is a fictitious public company in the cable industry, founded by its current Chairman and CEO, Jefferson Means. For this case, students assume the role of an entry-level accountant in an international accounting firm that has just acquired this client. Students are provided with background information on the company and its environment in Part I of the case and provided with information related to a critical business process, subscriber management, in Part II of the case.

This case involves audit planning, considering fraud risk of an organization in a competitive, regulated, and volatile industry. For this case, the established criterion is AICPA Statement of Auditing Standards No. 99, Consideration of Fraud in a Financial Statement Audit (SAS No. 99). While many of the facts in the case are adapted from fraud risks and actions that occurred at actual organizations, the company is fictitious to enable the case to place students in the role of the auditor evaluating the organization for fraud risks both before and after analyzing a key business process. By performing the requirements in this case, students are exposed the key aspects of SAS No. 99, which should be maintained and possibly expanded pursuant to consideration by the Public Company Accounting Oversight Board (PCAOB), within the context of audit approaches being used to some extent by all international accounting firms (e.g., Lemon et al. 2000). The case illustrates the usefulness of business process analysis for assessing fraud risk as well as the iterative nature of the assessment.
Hollow Men and Women at the Helm … Hollow Accounting Ethics?
Authors: Waddock Sandra
Published: April 2008

Until business schools teach future accountants and leaders how deep the connections are between business, society, nature, and the world, corporations will continue to be run by hollow leaders who have no sense of ethics or responsibility. Accounting for performance is likely to remain too narrowly focused to be helpful in today's demanding environment.
The Effect of Pension Income on the Quality of Corporate Earnings: IBM, A Case Study
Authors: Williams Patricia A.
Published: April 2008

This case examines the effect of pension income, as determined by the Statement of Financial Accounting Standard (SFAS) No. 87, on the quality of corporate earnings. Specifically, students are asked to interpret the pension footnote from IBM's 2001 Annual Report. Unlike many companies that indicate a cost associated with their pension plans, IBM reports pension income, not pension expense, for fiscal year 2001. An article in the Wall Street Journal referred to in the case reports that pension income boosted IBM's income before taxes by 13 percent in 2001. Through a series of questions, students are asked to analyze IBM's pension footnote and its effect on earnings. The purpose of this case is to enhance the learning process by reinforcing material learned from accounting texts with a real-world application, to understand the effect of pension accounting on a company's quality of earnings, to illustrate that accounting standards occasionally include provisions that effectively mitigate potential earnings volatility, and to demonstrate that students need to question what they read in the financial press.
The Influence of Effective Teaching in Accounting on Student Attitudes, Behavior, and Performance
Authors: Shaftel Julia , Shaftel Timothy L.
Published: April 2008

In 1993 the School of Business at a large midwestern university established a task force to redesign its introductory accounting/business course. The task force shared many goals of the contemporaneous Accounting Education Change Commission, which addressed desirable attitudes and behaviors for the profession. Although approaches to knowledge and skill development are well understood at universities, much less is known about the impact of effective accounting education on student attitudes and behavior.

After implementing instructional interventions, student attitudes and study skills improved significantly over one semester. The causal relationship of attitudes and behaviors was modeled using the Theory of Reasoned Action. Self-reported behaviors were validated by external ratings and course performance. Achievement attitudes were strongly and directly influenced by subjective norms. Our results reflect positively on the activities and procedures used to create normative influences within the class. In particular, the use of teaching assistants (TAs) as positive role models was substantiated.

After implementing instructional interventions, student attitudes and study skills improved significantly over one semester. The causal relationship of attitudes and behaviors was modeled using the Theory of Reasoned Action. Self-reported behaviors were validated by external ratings and course performance. Achievement attitudes were strongly and directly influenced by subjective norms. Our results reflect positively on the activities and procedures used to create normative influences within the class. In particular, the use of teaching assistants (TAs) as positive role models was substantiated.