Analyzing two investments-an instructional case to introduce basic financial accounting concepts

Wendy Bailey, Janet A. Samuels

    Research output: Contribution to journalArticle

    Abstract

    This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., '‘boot camp’'). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.

    Original languageEnglish (US)
    Pages (from-to)47-56
    Number of pages10
    JournalIssues in Accounting Education
    Volume33
    Issue number4
    DOIs
    StatePublished - Nov 1 2018

    Fingerprint

    student
    income statement
    balance sheet
    learning objective
    indebtedness
    transaction
    instructor
    graduate
    Financial accounting
    income
    evaluation
    Cash flow
    Balance sheet
    Legal aspects
    Debt
    Accrual accounting
    Ownership
    International accounting
    Financial reporting
    Financial result

    Keywords

    • Accounting orientation
    • Accounting “boot camp.�?
    • Accrual accounting concepts
    • Introductory financial accounting

    ASJC Scopus subject areas

    • Accounting
    • Education

    Cite this

    Analyzing two investments-an instructional case to introduce basic financial accounting concepts. / Bailey, Wendy; Samuels, Janet A.

    In: Issues in Accounting Education, Vol. 33, No. 4, 01.11.2018, p. 47-56.

    Research output: Contribution to journalArticle

    @article{c1e7e56047964afcb108c4245e835f53,
    title = "Analyzing two investments-an instructional case to introduce basic financial accounting concepts",
    abstract = "This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., '‘boot camp’'). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.",
    keywords = "Accounting orientation, Accounting “boot camp.�?, Accrual accounting concepts, Introductory financial accounting",
    author = "Wendy Bailey and Samuels, {Janet A.}",
    year = "2018",
    month = "11",
    day = "1",
    doi = "10.2308/iace-52254",
    language = "English (US)",
    volume = "33",
    pages = "47--56",
    journal = "Issues in Accounting Education",
    issn = "0739-3172",
    publisher = "American Accounting Association",
    number = "4",

    }

    TY - JOUR

    T1 - Analyzing two investments-an instructional case to introduce basic financial accounting concepts

    AU - Bailey, Wendy

    AU - Samuels, Janet A.

    PY - 2018/11/1

    Y1 - 2018/11/1

    N2 - This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., '‘boot camp’'). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.

    AB - This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., '‘boot camp’'). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.

    KW - Accounting orientation

    KW - Accounting “boot camp.�?

    KW - Accrual accounting concepts

    KW - Introductory financial accounting

    UR - http://www.scopus.com/inward/record.url?scp=85066611945&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=85066611945&partnerID=8YFLogxK

    U2 - 10.2308/iace-52254

    DO - 10.2308/iace-52254

    M3 - Article

    AN - SCOPUS:85066611945

    VL - 33

    SP - 47

    EP - 56

    JO - Issues in Accounting Education

    JF - Issues in Accounting Education

    SN - 0739-3172

    IS - 4

    ER -