1.

Grade Level/Subject: Accounting 1, 10th-12th grades

2. Length of Lesson: 1 week
3. TEKS & NETS-Students Standards Addressed:
TEKS:
130.166 (b) - Students investigate the field of accounting, including how it is impacted by
industry standards as well as economic, financial, technological, international, social,
legal, and ethical factors. Students reflect on this knowledge as they engage in the process
of recording, classifying, summarizing, analyzing, and communicating accounting
information. Students formulate and interpret financial information for use in
management decision making.
130.166 (c)(3) - The student uses equations, graphical representations, accounting tools,
strategies, and systems in real-world situations to maintain, monitor, control, and plan the
use of financial resources.
130.166 3(M) - The student is expected to discuss the use of financial ratios in
accounting.
130.166 3(N) - The student is expected to determine business liquidity.
130.166 3(O) - The student is expected to calculate business profitability.
NETS:
1. Creativity and innovation - Students demonstrate creative thinking, construct
knowledge, and develop innovative products and processes using technology.
a. Apply existing knowledge to generate new ideas, products, or processes
b. Create original works as a means of personal or group expression
d. Identify trends and forecast possibilities
2. Communication and collaboration - Students use digital media and environments to
communicate and work collaboratively, including at a distance, to support individual
learning and contribute to the learning of others.
a. Interact, collaborate, and publish with peers, experts, or others employing a
variety of digital environments and media

b. Communicate information and ideas effectively to multiple audiences using a

variety of media and formats
d. Contribute to project teams to produce original works or solve problems
3. Research and information fluency - Students apply digital tools to gather, evaluate,
and use information.
a. Plan strategies to guide inquiry
b. Locate, organize, analyze, evaluate, synthesize, and ethically use information
from a variety of sources and media
c. Evaluate and select information sources and digital tools based on the
appropriateness to specific tasks
d. Process data and report results
4. Critical thinking, problem solving, and decision making - Students use critical
thinking skills to plan and conduct research, manage projects, solve problems, and
make informed decisions using appropriate digital tools and resources.
b. Plan and manage activities to develop a solution or complete a project
c. Collect and analyze data to identify solutions and/or make informed decisions
5. Digital citizenship - Students understand human, cultural, and societal issues related
to technology and practice legal and ethical behavior.
b. Exhibit a positive attitude toward using technology that supports collaboration,
learning, and productivity
d. Exhibit leadership for digital citizenship
6. Technology operations and concepts - Students demonstrate a sound understanding
of technology concepts, systems, and operations.
b. Select and use applications effectively and productively
4. Big Ideas, Enduring Understandings, Important Concepts Students Will Learn:
Big Ideas
Business owners, investors, creditors, and other business people make many important
business decisions every day.

Their decisions can help a company to grow bigger or they can cause a company to go
out of business.
Business owners, investors, creditors and other business people use various tools,
strategies, and analytical skills to make intelligent business decisions.
Enduring Understanding
The different types of business decisions business owners, investors, creditors and other
users make.
Business owners, investors, creditors, and other users of financial statements use the
information found in the financial statements of companies to show them important
relationships about the financial data in the financial statements and to help them make
comparisons from year to year and from company to company.
Important Concepts
One of the tools business owners, investors, creditors, and others use are financial ratios.
Understanding what the ratio means is more important than just knowing how to
calculate the ratio.
Comparisons must be applied to like entities (multiple years within the same company or
between companies of the same industry) or the results could be incorrect, unreliable, or
unusable.
5. Essential Question(s) related to #4:
What is financial ratio analysis?
What is the purpose of computing financial ratios?
What do the financial ratios tell business owners and investors about the business?
How do financial ratios help users of financial statements?
How are financial ratios calculated?
6. Student Learning Objective (what students will learn; a measurable action; not the
activity or task; should represent high-level learning in the discipline; be clear &
written in form of student learning, & permit viable methods of assessment; SLO
should directly align with assessment #16D):
The student will define financial ratio analysis.

The student will use the balance sheet and the income statement to calculate financial
ratios.
The student will assess the financial condition of a company using financial ratio
analysis.
The student will explain the advantages and disadvantages of using financial ratio
analysis.
7. How Learning Objective will be Assessed (must align with #6 Student Learning
Objective & #16D Assessment):
The student will assess the financial condition of a company and present the findings to
the class.
8. How is todays lesson relevant and interesting for your students? This should tie to
the lesson's essential questions and students' interests (Danielson, 2013, 3e).
Students will pick a real-world company they are interested in learning about, and apply
the skills learned in this lesson to the financial statements of the company they have
chosen to determine the financial position of that company.
9. Explain how this lesson is learner-centered. In other words, what will the students
be doing? "The activities and assignments are the centerpiece of student
engagement, since they determine what it is that students are asked to do. Activities
and assignments that promote learning require student thinking that emphasizes
depth over breadth and encourage students to explain their thinking" (Danielson,
2013, 3c).
This lesson is learner-centered because the students have to do the research in this lesson
to determine what financial ratios are, what they tell business owners, investors and other
users, and how to calculate them. Then, the students have to apply the knowledge gained
in their research to calculate the financial ratios of a real company's set of financial
statements, analyze the results, and prepare a website presentation explaining what the
results of those calculations mean.
10. Typical student misconceptions related to concepts being learned & how they will be
addressed:
That the results found in the calculations of financial ratios can be used alone. The results
from the calculations of financial ratios must be compared against something to have
meaning, such as the industry norm or the company's past performance.

That financial ratios do not have limitations. Advantages and limitations of financial
ratios will be discussed. That the results found in calculation of financial ratios are
always correct and reliable.
If the business transactions used to create the financial statements are not prepared
correctly, or if the financial statement themselves are not prepared correctly, then the
results found in the financial ratios will not be valuable.
11. Identify/list the prerequisite knowledge, skills, concepts, & behaviors required by
students to engage in this lesson.
Students will need to have a good working knowledge of what financial statements are the balance sheet, the income statement, and the statement of owner's equity or statement
of retained earnings. Students will need to have basic math skills that will be used in the
calculation of the financial ratios. Students will need to be able to work together
cooperatively in small groups. And students will need to be able to use the internet do
their research and be able to construct a web page to be used in their presentation.
12. Describe how the visual advance organizer illustrates how the content being learned
relates with the essential questions or big ideas of the discipline. Describe how the
graphic organizer will support cognitive processes required by students in this
learning activity (to be created by the visual advance organizer) and how the
graphic organizer directly aligns with the student learning objective and assessment.
VAO: Financial ratio analysis works like a detective trying to uncover something. For
people trying to decide on investments, there are massive amounts of numbers to sift
through. Companies therefore do financial ratio analysis to organize the information into
more manageable chunks. Just like a detective pieces together evidence to solve a crime,
people can put together the pieces of "evidence" from financial ratio analysis to decide
whether to invest or not. All these numbers and black and white ink can be a bit dry, so
this image of the detective investigating the different types of financial ratios will help
grab the students' interest and get them thinking about what financial ratios are and how
they are used.
Graphic Organizer:
Ratios can be complex, so a graphic organizer which relates commonly known ratios,
such as speed or heart rate, may help students make the connections of what exactly a
ratio is. The graphic organizer will, however, have a focus on the financial ratios and
what they are. Because there are 6 main types of financial ratios, the GO divides them
into 6 colors. This gives a makes it even more visual for the students. The concept map
helps make the connections for the students between common ratios they have already
heard of and the new ratios learned in the lesson. Below is an image of the blank graphic
organizer given to students to fill in, and what the completed graphic organizer may look

like. The color coding is obvious in the pictures. Students can use the blank copy as a
study aid to help them test their knowledge, or they can use it to help them take notes.
13. Explain how the student technology tool (to be illustrated by multimedia master)
enhances learning and how it directly aligns with the student learning objective and
assessment.
The students will work in their home groups using Weebly, a website-making tool, to
create their own sites as an application of the knowledge they learned from teammates.
They will be able to present their analysis, and even upload graphs if they have made
them. It ties in directly with the 3rd learning objective: "The student will assess the
financial condition of a company using financial ratio analysis," and this site, along with
the presentation from it, is what will be assessed in the end.
14. Model of teaching: Jigsaw
15. List each procedure according to stages of this teaching model (Dell'Olio text), and
describe how you will address each procedure in this lesson? Include questions you
will ask your students within the stages and procedures, including questions to use
as formative assessment and to challenge students' thinking.
If computers are not available in the class, most of this lesson would need to be in a
computer lab.
Focus activity - The visual advance organizer will be on the screen as the students enter
the room. To begin the lesson, the teacher will ask students what types of things they are
interested in purchasing, such as cars, phones, clothes, etc. Next, the teacher will ask
them what company they would buy these items from, such as Chevrolet, Apple, and
Nike. Then, the teacher will ask them how much profit they thought these companies
have earned in the last year, and if they think these companies are making more profit this
year than they were last year or the year before that. The teacher will then explain that
companies are in business to make a profit, and that the goal of management is to make a
bigger profit every year. This helps the company to get more investors and more
resources to use to make the bigger profit. The teacher will ask the students what types of
information they think can be found in the financial statements of businesses? At this
time, the teacher will assess the students' prerequisite knowledge by having them write
down six ways they would use each of the financial statement of a company for, if they
were the owner of that company; two ways for each financial statement. This will be
followed by a short class discussion addressing the following question - how would you
use the financial statements if you were the business owner? investor? creditor? Next, the
teacher will explain that business owners, managers, investors, and other users of
financial information need a way to breakdown the massive amounts of information and
numbers contained in the financial statements into more manageable chunks that can be
sifted through and used to determine the financial position of a company, much like a
detective trying to organize large amounts of evidence into a useable form in order to

solve a crime. The teacher will ask the students what do you think are some ways
business owners, managers, investors, and other users can use to analyze the financial
statements? One way business owners, managers, investors, and other users break down
the information in the financial statements into more manageable chunks is by calculating
various financial ratios using the financial statements of the company. The teacher will
ask the students if anyone has heard of financial ratios before. If yes, the teacher will find
out what they know about financial ratios before assigning them to their expert group. If
no one has heard of financial ratios the teacher will tell them that is what the will be
studying next and then, the students will be assigned to an expert group by the
teacher. There will be six expert groups.
Expert group - The teacher will write the name of six major categories of financial ratios
on separate pieces of paper (there are varying opinions as to the major category
titles depending on the source of information being used, however, the overall meaning of
the categories as well as the ratios themselves are the same). The six major categories that
will be used in this lesson are: liquidity ratios, profitability ratios, debt ratios, operating
performance ratios, cash flow ratios, and investment valuation ratios. One person from
each expert group will come to the front of the class and pick one of the pieces of
paper. That will be the financial ratio category that group will investigate. Each student
will a receive a copy of the graphic organizer (blank) to fill out the information found in
their ratio category in the expert group and then take the graphic organizer back to their
home group to complete with the rest of the information. Each expert group will use the
internet to investigate what the financial ratios in their category mean and choose two
ratios from that category to learn how to calculate. The teacher will move among the
groups to facilitate the process and answer any questions.
Home group - The students will move back to their home groups where they will teach
each other about the different categories of financial ratios, their meaning, and the two
ratios each expert group chose to calculate. Then the home group will chose a company
that is of interest to them as a group. The students will use the internet to get the annual
financial statements of the company they have chosen for the last three years. The
students will use these financial statements to calculate the financial ratios they have
learned in their home group, create a website to hold this information, and do a
presentation to the class of their findings. The teacher will ensure that each home group
chooses a different company. The teacher will move among the groups to facilitate the
process, answer any questions, and ensure that each group has their graphic organizer
filled out with the correct information.
Debriefing - The teacher will conduct a full class discussion highlighting major findings
by each group. The teacher will ask the students how they think business owners,
investors, and others would use the information they found in their analysis of their
company to make prudent business decisions in real world situations. The teacher will
ask if they think financial ratios are a "fool proof" way of analyzing financial
statements. The teacher will ask the students what they think are some of the advantages
and disadvantages of using financial ratios to analyze a company.

Group processing - the teacher will ask the students if they liked having the class like
use the jigsaw model to learn about financial ratios? And, would they like to use jigsaw
again? After the jigsaw lesson, the home groups will have a time for a small-group
discussion on how they think their group performed and what they thought they could do
better as a group in the next cooperative learning lesson. The teacher will have each
group write three things that they did really well in their group during this collaborative
group lesson? And, three ways that they can improve their group in the next collaborative
group lesson? The teacher will then ask one person from each group to share their
thoughts with the class on how they thought their group did and how they thought they
could improve their group work.
Individual Accountability - each expert person will explain his/her financial ratios that
the home group calculated during the presentation and there will also be a quiz on
financial ratios at the end of the unit.
16. Assessment (to align with student learning objective):
A. How you will assess your students prerequisite knowledge (PK), skills, concepts,
& behaviors necessary for this lesson? See CATS (Classroom Assessment
Techniques in TRACS Resources) for ideas.
I would use the focused listing technique to assess my students' prerequisite
knowledge. I would tell them that we have been learning about the accounting cycle
from analyzing and recording transactions in the beginning of the cycle all the way to
preparing the financial statements at the end of the cycle. I would have the students
write down the three financial statements: balance sheet, income statement, and
statement of cash flows. Then, I would tell the students, now that they have prepared
each of the financial statements, to write down two things they would use each of the
financial statements for, if they were the owner of the business. Two things they
would use the balance sheet for, two things they would use the income statement for,
and two things they would use the statement of cash flows for.
B. List a series of questions you may use as formative assessment during your
facilitation of this lesson (also included in the stages and procedures of the
model). "The teacher uses a variety or series of questions or prompts to
challenge students cognitively, advance high-level thinking and discourse, and
promote metacognition" Danielson, 2013, 3b).
-

What types of information can be found in the financial statements of businesses?

How would you use the financial statements if you were the business owner?
investor? creditor?

What do you think are some ways business owners, managers, investors, and
other users can use to analyze the financial statements?

Has anyone heard of financial ratios before?

The teacher will ask if they think financial ratios are a "fool proof" way of
analyzing financial statements.

What are some advantages of using financial ratios to analyze financial

statements?

What are some of the limitations of using financial ratios to analyze financial
statements?

What are three ways that we can improve our group in the next collaborative
group lesson?

What are three things we did really well in our group during this collaborative
group lesson?

How did the class like using the jigsaw model to learn about financial ratios?

Would they like to use jigsaw again?

C. Create a series of higher-level discussion questions (using Blooms taxonomy)

that are developmentally appropriate for your students. These should be
"questions of high quality that cause students to think and reflect, to deepen
their understanding, and to test their ideas against those of their classmates; be
cognitively challenging and have multiple correct answers or multiple
approaches" (Danielson, 2013, 3b).
-

Why is ratio analysis done?

When you compare the results of the current ratio from this year to last year, and
the year before, what do those results tell business owners or investors?

When you compare the results of the return on equity (ROE) over the past three
years, what do those results tell business owners and investors?

Would you invest in this company? Why or why not?

Which financial ratio would you use to see how well a company is using its assets
or resources and why?

Which financial ratio would you use to see how well a company is turning over its
inventory and why?

What do you think are some advantages to using financial ratios to analyze the
financial statements of a company?

What do you think are some disadvantages and limitations in using financial
ratios to analyze the financial statements of a company?

If you were the business owner, which financial ratios would you be most
interested in and why?

If you were an investor, which financial ratios would you be most interested in
and why?

If you were a creditor, which financial ratios would you be most interested in and
why?

D. Create an analytic rubric to use as a summative assessment for this lesson (must
align with #6 student learning objectives; expectations must be clearly defined).
"It is essential that students know the criteria for assessment...valuable feedback
must be timely, constructive, and substantive and must provide students the
guidance they need to improve their performance; students should be able to
assess their own work against established criteria" (Danielson, 2013, 3d). List
"excellent" criteria first so that students begin with reviewing the highest
expectations.

Scoring Rubric for Financial Ratio Analysis

Teacher Name: Wilder

Student Name:

________________________________________

CATEGORY

Exemplary

Above Average

Adequate

Organization

Well organized
with a clear
logical
beginning,
middle, and

Organized with a Less organized,

discernible
hard to
beginning,
determine
middle, and
beginning,
ending
middle, and

Below Average
Organization
unclear, unable
to determine
beginning,
middle, and

ending
10 points

9 points

ending
8 points

ending
7 points

Mechanics

Few to no
spelling or
grammar errors
in the web site
10 points

Occasional
independent
spelling and
grammar errors
in the web site
9 points

Repetitive
grammar and
spelling errors
in the web site
8 points

Wide variety of
numerous
spelling and
grammar errors
in the website
7 points

Use of Financial
Ratios

The student
identifies both
of the relevant
financial ratios
and describes
their use clearly
15 points

The student
identifies both of
the relevant
financial ratios
and adequately
describes their
use
13 points

The student
identifies one of
the required
financial ratios
and briefly
describes its
meaning
11 points

Student does
not identify any
of the financial
ratios but
provides brief
descriptions of
what financial
ratios mean
9 points

Accuracy and
Presentation of
Financial Ratios

The student
accurately
calculates the
relevant
financial ratio
and presents
the results in a
chart or graph
25 points

The student
calculates at
least on the
financial ratios
correctly and
presents the
results in a chart
or graph
20 points

The student
miscalculates
both of the
financial ratios
correctly but
does present
the results in a
chart or graph
15 points

The student
miscalculates
both of the
financial ratios
and does not
present the
results in a chart
or graph
10 points

Narrative
Description of
Financial Ratios

The student
elaborates on
both of the
financial ratios
and related
their use in a
logical way as
to how it would
be used in realworld setting
25 points

The student
describes both
financial ratios
and somewhat
relates their use
in a logical way
as to how it
would be used in
a real-world
setting
20 points

The student
describes at
least one of the
financial ratios
adequately and
relates its use in
a logical way as
to how it would
be used in a
real-world
setting 15
points

The student
briefly describes
at least one of
the financial
ratios but does
not relate its use
in a logical way
as to how it
would be used in
a real-world
setting
10 points

Summary and
Conclusion

The student
summarizes the
discussion of
both ratios and
their uses
clearly
justifying the
valuation
conclusion
15 points

The student
summarizes the
discussion of
both ratios and
their uses and
adequately
justifies the
valuation
conclusion
12 points

The student
summarizes the
discussion of
one ratio but
presents little
support for the
valuation
conclusion
9 points

The student
summarizes the
discussion of at
least one of the
financial ratios
but provides no
support for the
valuation
conclusion
6 points

17. Instructional Modifications for Students with Special Needs Document how you
would differentiate this instruction AND assessment for (A) a student who reads below
grade level; (B) a student who writes below grade level, and (C) an English language
learner.
This model of instruction is jigsaw where small groups work together to learn a concept then
teach the concept to other students. I would place students that read and write below grade
level with a group of students that are at or above grade level to help the student that is
reading or writing below grade level. I would have to carefully chose which group to place
this student in based on the students that I thought would help the student not embarrass the
student and I would ask this student to come in for a tutorial if the students needed further
help comprehending the content or further help constructing his/her portion of the
assignment. Assessment would be the same for someone who reads and writes below grade
level but additional help will be offered to the student to ensure that the student comprehends
the content and can construct his/her portion of the website.
For English language learners, I would be sure to put them in a group where at least one
person in the group speaks the native language of the English language learner that would be
willing to help this student. Also, the speaking part can be written by the English language
learner and one of the other students in the group can read the English language learners
written part. The written part will have to be submitted to the teacher and the teacher would
need to have the written part translated.