NotesFAQContact Us
Search Tips
Peer reviewed Peer reviewed
Direct linkDirect link
ERIC Number: EJ899438
Record Type: Journal
Publication Date: 2007-Apr
Pages: 6
Abstractor: As Provided
Reference Count: 9
ISSN: ISSN-1544-0389
An Experiment of Student Understanding of Accruals versus Cash Flows
Miranda-Lopez, Jose Eduardo; Nichols, Linda M.
Journal of College Teaching & Learning, v4 n4 p53-58 Apr 2007
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.)
Clute Institute. P.O. Box 620760, Littleton, CO 80162. Tel: 303-904-4750; Fax: 303-978-0413; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Mexico; United States