Income Statement & Balance Sheet Analysis for American Eagle – Accounting Entrepreneurship Business class

Description

Get your ENTREPRENEURSHIP, INTRO TO BUSINESS, AND ACCOUNTING class students to THINK about Financial Statements! This activity is a class favorite! My students love putting the text down and taking a break from the computer to use markers to dissect an Income Statement and Balance Sheet.

Students will need a set of markers or colored pencils. They will also need a basic understanding of Account Classifications. Some accounts do not fit in a neat and tidy category, but this activity opens up dialogue about those mysterious accounts and allows me to bring a real world example in my classroom that introduces some terms and accounts that perhaps were not covered in the text. Example: Goodwill Accounts, Cost of Merchandise Sold, and Research and Development.

Students are prompted to color each of the Account Classifications (Assets, Liabilities, Owner’s Equity, Expenses, and Revenue) and identify various parts of the Financial Statements for American Eagle Outfitters (AEO).

Students are then given three tasks. Students locate various evidence pertaining to the Financial Statements that they just reviewed. Included are some evidence to help students with analyzing these tasks.

I do this activity with my Level 1 Accounting students just after completing Income Statements and Balance Sheets. Also perfect for your Intro to Business or Entrepreneurship classes.

⭐TEACHER’S KEY INCLUDED⭐