Accounting - Analyzing the Impact of Asset Disposal on Financial Statements

Objectives:

• Students will be able to explain the impact of asset disposition on financial statements.
• Students will be able to analyze and interpret the financial statements after asset disposition.
• Students will be able to identify the different methods used for asset disposition.

Age Level: Late secondary school/junior college

National Standards: Complies with NBEA Accounting 2023 Standard IV.3.5 Determine the impact on the financial statements when assets are sold, disposed of, or rendered obsolete.

Materials:

• Whiteboard and markers
• A deck of cards with different assets (e.g., equipment, furniture, vehicles, patents, trademarks, etc.)
• A game board with a path divided into sections representing different financial statement line items (e.g., cash, accounts receivable, inventory, property and equipment, etc.)
• Game pieces (one per student)
• Dice