The Cheesecake Factory: A Serial Introductory Financial Accounting Case

• In Event: Teaching, Learning and Curriculum

Abstract

This serial case is composed of 14 mini-cases that allow students to apply basic introductory financial accounting concepts to various business aspects of The Cheesecake Factory Incorporated. This serial case differs from most other cases in that this case is aimed directly at the introductory financial accounting student. The mini-cases allow our introductory students to benefit from studying a real-life case, without getting derailed by the advanced facts that are involved in most case studies.
Each mini-case is designed to take between 10 – 30 minutes. A broad variety of financial accounting topics are covered by these mini-cases, including transaction analysis, adjusting entries, receivables, contingent liabilities, and financial statement analysis. The mini-cases can be used to help engage students in an introductory financial accounting course by applying introductory financial accounting concepts to a familiar real-life business.
The mini-cases are organized in the order that the topics might typically be taught in an introductory financial accounting course, but can be taught in any order. The first mini-case introduces highly condensed and adapted financial statements of The Cheesecake Factory. These statements can be used to illustrate the basic financial statements. The student can also identify the relationships between the four statements. The second mini-case lists some typical transactions that might occur at a Cheesecake Factory restaurant and the student is asked to analyze the impact of these transactions on assets, liabilities, and equity. Mini-cases 3 and 4 focus on adjusting entries, the trial balance, closing entries, and the accounting equation. Mini-cases 5 through 11 feature various accounts from the balance sheet, starting with cash and internal control and ending with stockholders’ equity. Mini-case 12 asks the student to analyze the independent auditor report through a series of guided questions. The statement of cash flows is featured in mini-case 13, and the mini-cases conclude with mini-case 14 in which the student uses various ratios and measures to analyze the financial health of The Cheesecake Factory.
The main features of these mini-cases are that they are concise and easy for the introductory-level student to grasp. The student can apply basic financial accounting concepts to these mini-cases and can better understand the basic principles of financial accounting through this application. By using a familiar company and setting, students can make the learning connections between the familiar and admittedly abstract accounting concepts.

Authors

• Wendy Tietz, Kent State University - Kent

• Jordan Kushner, Kent State University