Business Activity Model

The Business Activity Model (BAM) emphasizes financial disclosure and technical research in addition to the accounting topics commonly found in traditional Intermediate Accounting courses. The BAM is designed to

provide experiential learning that mimics aspects of the real world accounting profession,
promote technical competency,
develop life-long research skills,
advance critical thinking,
and foster the development of communication skills.

The BAM is ideally suited for preparing students for the competencies of Research, Analysis, Judgment, and Communication, currently tested on the CPA Exam. The evolving computerized exam is specifically designed to test for the knowledge and skills that CPAs will need ON THE JOB through the incorporation of simulations to test spreadsheet, research, and multi-disciplinary skills, all factors specifically addressed by the BAM's unique design.

BAM is an intermediate accounting simulation, , but also has the flexibility to be used piecemeal as supplementary material in a capstone or graduate accounting course. Students perform the accounting and financial reporting processes found in practice by conducting analytical reviews, soliciting information from clients, preparing adjusting and correcting entries, and drafting financial statements and notes for each of six years for a fictitious start-up client company (Hydromaint). Issues become more complex as Hydromaint's operations mature. The business begins as a service entity and later develops into a manufacturing and construction enterprise. During this transition, Hydromaint's operations address all of the technical issues traditionally covered in a two-semester intermediate course. Students are required to provide a complete set of financial statements, including the direct method statement of cash flows, and appropriate note disclosures for the company for each of the six years. The repetitive nature of the accounting and financial reporting process pursued in this approach integrates reinforcement with new learning and mimics the accounting processes and spreadsheet documentation found in the business environment.

The BAM can be purchased as a complete set or piecemeal by year, and because of the emphasis on up-to-date research of the Accounting Codification, can be implemented in conjunction with any new or used Intermediate textbook.