Document Type

Article

Publication Date

2012

Published In

American Journal of Business Education

Keywords

Financial accounting, Introductory accounting, Transaction analysis, Financial reports, Balance sheet, Income statement

Abstract

Professors who teach the introductory accounting course should ask themselves: "What are the core concepts that I wish to have my non-majors remember if I meet them at their ten-year alumni class reunion?" There is a fundamental logic to financial accounting. This teaching note presents foundational accounting concepts in a manner that enables readers to understand this logic. In doing so, it answers the question posed above.

The first half of the teaching note explains the purpose and elements of two primary financial reports: a balance sheet and an income statement. The second half presents the recording of several business transactions and traces their effect into a company's balance sheet and income statement. Designed for use early in an introductory accounting course, the teaching note enables students to develop a strong conceptual understanding of financial accounting.

DOI

10.19030/ajbe.v5i6.7397

Creative Commons License

Creative Commons Attribution 3.0 License
This work is licensed under a Creative Commons Attribution 3.0 License.

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