Advanced Excel Integration in Accounting Education Curriculum

Integrating Advanced Excel into the Accounting Curriculum Cases in Financial and Cost Accounting

Three Methods of Computational Assignments Homework management system Traditional Excel templates from textbooks websites Advanced Excel technique suitable for various accounting topics We have used all three and advocate for more coverage of the third method integrating Excel as we cover the accounting curriculum.

I. Homework Management Systems Interactive learning and faster feedback Quiz feature qualitative exercises such as Learn Smart in McGraw Hill s products Simplifies grading for faculty Cannot improve Excel proficiency http://connect.mheducation.com/connect/hmInstructorCour seList.do Dilemma: Textbook Excel template or HMS, which one to choose?

II. Traditional Excel Templates from Textbooks Websites Excel is used as a facilitator of the concept taught in a chapter. Some very basic spreadsheet, while the best examples incorporate inter-worksheet links and embedded functions. Visually see the interrelationship among accounts, and financial statements. Create formula and links among cells and worksheets. Instructors need to check the formula

Notable Differences in Sophistication Fundamentals of Financial Accounting (Phillips 4e) http://highered.mheducation.com/sites/0078025370/student_view0/chapter2/excel_templates.html Advanced Accounting (Hoyle 12e) http://highered.mheducation.com/sites/0077862228/student_view0/chapter3/excel_templates.html Managerial Accounting (Oliver 1e) http://media.pearsoncmg.com/ph/bp/bp_harrison_BP/Oliver_ManAcct1e/OliverStudentResources1e.ht ml Financial Accounting (Horngren 11e) http://media.pearsoncmg.com/ph/bp/bp_harrison_BP/horngren_ifa11e/index.html Cost Accounting (Horngren 14e) http://media.pearsoncmg.com/ph/bp/bp_harrison_BP/Horngren_CostAcct14e/index.html Accounting: What the Numbers Mean (Marshall 10e) http://highered.mheducation.com/sites/007802529x/student_view0/chapter6/excel_problems.html http://highered.mheducation.com/sites/007802529x/student_view0/chapter13/excel_problems.html

Horngren 14e Excel labs gives only the numbers in Excel format. End of 2011 Canseco Company Beginning of 2011 Direct materials inventory $22,000 $26,000 Work-in-process inventory 21,000 20,000 Finished goods inventory 18,000 23,000 Purchases of direct materials 75,000 Direct manufacturing labor 25,000 Indirect manufacturing labor 15,000 Plant Insurance 9,000 Depreciation -- plant and building, and equipment 11,000 Repairs and maintenance -- plant 4,000 Marketing, distribution, and customer-service costs 93,000 General and administrative costs 29,000

CASE 1: Marshall (Depreciation1.xlsx, worksheet Traditional ) Excel functions SLN and DDB, some formula and linking cells. One step above those that only require basic summation and subtraction. Proficiency in incorporating formula and linked cells wherever possible. Useful for consolidation type of exercises in advanced accounting. Disadvantage of this facilitator approach: students and perhaps faculty may mistakenly think they are applying advanced Excel techniques, when, in reality, the embedded formula and links provided limited learning of Excel skills once students gain proficiency in entering certain formula.

III. Advanced Excel Integrated with Accounting Curricula Advanced techniques incorporated at the graduate and undergraduate level. Two higher level Excel exercises in DepreciationL: Vlookup, IF clause, Year, Today, SUMIF, MIN, VALUE, and cross footing test etc. Iterative process: students have various problems learning the functions. Some students focus on getting the correct numbers, but not learning the functions. Students need to revise by incorporating the correct formula even if their numbers are correct. Typical instructor comments: Column H is still not right. Formula need to be consistent. CASE 2: Advanced Excel on Depreciation (Depreciation1.xlsx)

CASE 3: Depreciation with VLOOKUP (Depreciation2.xlsx) Typical instructor comments: Column J needs to have formula, ie, calculating the age of the equipment. Maybe a simple mistake, but it teaches students to pay attention to details. Column K, evaluating each component of an embedded formula, ie, MATCH function inside VLOOKUP. Students need to explain in class the meaning of the components.

Cases in Cost Accounting: book template versus advanced level in cash budget CASE 4: lower-level Excel in cash budget (low_budget.xlsx) Emphasizes more content knowledge in the subject being taught. CASE 5: advanced Excel cash budget with spinner and scroll that enables sensitivity analysis (spinner and scroll.xlsx) proficiency in both the content (cash budget) and the Excel skill 1) create formula and links to represent the cash collection pattern, 2) implement the spinner and scroll, 3) protect a worksheet and important section within a worksheet.

CVP Analysis and Excel Solver CASE 6: A traditional CVP analysis case. (CVP_Solver.xlsx, worksheets Traditional1 and Traditional2 ) Excel in a limited capacity facilitating course content. CASE 7: advanced Excel with solver (5 solver outputs in CVP_Solver.xlsx) Powerful Solver technique to find the best combination of product sales given certain constraints. Integrate theory with advanced Excel skill embedded in the case requirement. Learning outcome: revise until the solver results contain five worksheets.

Integrate Higher-order Excel Techniques with Content Areas Students retain better both the content and the Excel skills. Students maintain a heightened level of interest whenever a case involving new tricks is introduced. Students respond enthusiastically on ways to improve their worksheets. Students engage in more active learning within a group setting. Do not wait until information systems course.