An Accounting Transaction Processing and Financial Reporting Case Using Stock Prices as Proxies for Inventory Costs

• In Event: Paper Dialogue Session I

Abstract

The project described in this paper is used to give introductory accounting students hands-on experience in processing the knowledge they learn in class. Students do a transaction processing project in which they record accounting transactions and prepare financial statements. The project is different from other transaction processing projects in that the transactions are not given, but are generated by the students using publicly available cost and pricing information. No two projects result in the same financial statements or net income. The projects are motivating in that the results are uncertain and more similar to actual practice than textbook exercises. Students indicate that they learn from the project, and the project appears aids in learning accounting concepts.

Author

• Darryl J. Woolley, University of Idaho