Managerial Accounting Principles: Financial Statement Analysis as a Capstone

• In Event: Reception with ELS Posters and Research Interaction Forum Posters
  In Poster Session: Effective Learning Strategies

Abstract

Two conceptual platforms compete for attention in a 6 hour intro accounting sequence. AIS (inputs) versus financial statement analysis (outputs) form the creative Hegelian dialectic which the instructor must balance in a syllabus that documents learning strategies and values. This poster explains an experiment to use a financial statement analysis project as a capstone event at the end of a Managerial Accounting Principles course. Most intro managerial texts end with a financial statement analysis chapter. However, one wonders how many instructors utilize that chapter either because of a perceived lack of relevance or because such learning already happened in intro financial accounting. This experiment revisits financial accounting using common-size and ratio analysis. So the experiment’s managerial link happens when students must make a reasoned assessment as to the apparent cost of capital which the analyzed company uses to make capital investment decisions (the previous managerial chapter’s theme). Working in teams of two, students wrote a short paper and delivered it to their classmates on the scheduled final exam date. After the presentations the students surveyed for their views on the experience.

Author

• Michael J Krause, University of Indianapolis