An Experiment of Student Understanding of Accruals versus Cash Flows

Autor/inn/en	Miranda-Lopez, Jose Eduardo; Nichols, Linda M.
Titel	An Experiment of Student Understanding of Accruals versus Cash Flows
Quelle	In: Journal of College Teaching & Learning, 4 (2007) 4, S.53-58 (6 Seiten) PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	1544-0389
Schlagwörter	Foreign Countries; College Students; College Instruction; Income; Accounting; Knowledge Level; Decision Making; Money Management; Mexico; United States + Suchen Sie Ihr Suchwort? Ausland; Collegestudent; Hochschullehre; Einkommen; Abrechnung; Buchführung; Buchhaltung; Wissensbasis; Decision-making; Entscheidungsfindung; Mexiko; USA
Abstract	The concepts of both accrual accounting and cash basis accounting need to be thoroughly understood by accounting graduates as they enter the workplace. In making decisions, both managers and investors often may need to make adjustments from one basis to the other. But do students really understand these concepts? This study uses an experimental approach to determine if students in both the U.S. and Mexico understand the association between accrual and cash flow numbers in the area of depreciation. The results reveal that the majority of student participants in both countries do not understand the relationship between depreciation and cash flows. This suggests that the way depreciation is taught in intermediate accounting may need to be approached differently in order for students to understand the nature of depreciation and its effect on earnings and cash flows. (Contains 3 tables.) (As Provided).
Anmerkungen	Clute Institute. P.O. Box 620760, Littleton, CO 80162. Tel: 303-904-4750; Fax: 303-978-0413; e-mail: Staff@CluteInstitute.com; Web site: http://www.cluteinstitute.com
Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10