This study tested the effects of two instructional sequences--principle-procedure and procedure-principle--on the application and transfer of learning. It was hypothesized that a principle-procedure sequence would result in better near-transfer and far-transfer and that students would prefer this sequence. The 38 freshmen enrolled in a business studies course at a community college who served as subjects were divided on a stratified random assignment into two groups. Two modules--a Principle Module and a Procedure Module--were prepared in booklet form on the topic of presentation of a statement of changes in financial position. Students in the two groups were given the same instruction, differing only in the order in which the modules were presented. A posttest measured near-transfer and far-transfer learning, and a post-questionnaire gathered personal data and responses on attitudes and preferences regarding the sequencing of instruction. Results showed no significant difference in learning outcomes but there was a general preference for the principle-procedure sequence. Eight references are provided as well as a list of other publications in this series of working papers. (Author/MES)