A Successive, Comprehensive Exercise Useful for Learning Introductory Financial Accounting
Daniel W. Law
Gonzaga University, USA
Volume 9: 2014, pp. 101-124; ABSTRACT
This purpose of this paper is to present a three-part comprehensive exercise designed to assist students at the introductory level and from any country effectively master the basics of the accounting process. In each part of the exercise, for a fictitious company, students examine the information provided and record all journal entries, post these to T-accounts, prepare an adjusted trial balance, prepare all four general purpose financial statements, and do basic financial statement analysis relative to a credit decision. While each part of the exercise is similar in format and identical in requirements, each successive part represents a new company and adds a layer of complexity relative to newly covered material as it generally appears in most introductory texts. This unique, successive exercise is instrumental in building confidence and helping students master the accounting process. These objectives have uniformly and successfully been met by multiple instructors, at various levels, and in different countries. The exercise can also be utilized by business persons interested in greater mastery of the accounting process.
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