STUDY TECHNIQUES FOR ACCOUNTING

want to add to or outline your notes.

Students generally view accounting as one of their more

difficult business courses. Students
tend to be overwhelmed by the new theories and concepts
that they encounter in an accounting
course.

4. As you review your notes, if any questions come to mind

on the material covered, make a note so that you can
ask your professor specific questions. Seek help early.
5. Do the assigned homework problems before the due
date. Even if you still don't quite understand the material,
attempt the homework problems. This will enable you to ask
your professor about specific homework problems
before they are due.

GETTING AN OVERVIEW
Basically, accounting is an information system. Accounting
is the set of rules and methods by
which financial data are collected, processed, and
summarized into reports that can be used in
making decisions. Accounting reports provide information
for managerial planning, control, and
decision making. These reports also provide information to
outside investors, creditors, and
regulators interested in the financial position of the
company. An accounting professor will
stress major theories and concepts, and one of the goals is
that you, the student, will be able to
read, understand, and interpret financial data.
An overview of the course can help you organize your
efforts and increase your efficiency. The
following are steps to getting an overview of the material in
an accounting course:
1. Read the information given in the course syllabus. Look
for important themes and principles that will be
covered.
2. Usually in an accounting course, homework problems are
assigned daily. This might be a good time to list
important dates on your calendar such as when
assignments are due and exams are scheduled.
3. Preview the textbook by reading the introduction and the
table of contents. Check the syllabus to see what
chapters are assigned and which are omitted.
4. If available, a study guide would be a wise investment.
Study guides usually outline important concepts and
theories. They also give additional practice questions and
problems, which not only help you to further
understand underlying accounting theories and concepts,
but also help you prepare for exams.
5. Set goals for this class and develop a means for
accomplishing them.
GETTING STARTED
Several guidelines should be followed in order to effectively
and efficiently study accounting.
1. Read the material before the professor's lecture. This will
enable you to ask questions on material you didn't
understand or to clarify any new concepts. Reading
beforehand also allows you to participate in class
discussions over the day's topics, thus reinforcing your
understanding of the material.
2. Listen attentively and take notes. Copy down any
examples the professor has written on the board.
3. Soon after the lecture, review and edit your notes. You
need not rewrite your notes. Rather, you should look for
important ideas and relationships among major topics.
Summarize these in the margin, and at this time you may

6. Recognize the purpose of solving problems. They serve to

test your knowledge of the underlying concepts.
Don't get so lost in details of problem-solving that you
overlook the concepts. Also, approach the problems with
the idea that you are solving them for your benefit rather
than for the professor's benefit.
7. Review the cases, questions, exercises, and problems at
the end of the chapter. Solve additional problems in
areas of greater difficulty.
8. If possible, form a study group with classmates. Study
groups are very effective in learning difficult material.
Going over each others' notes and discussing concepts will
further aid in the understanding of the material.
Fifteen Tips for Studying Accounting
By Fr. Thomas Conway, O.F.M., C.P.A., Ph.D.
The sequence is intentional. Keep in mind that the
accounting course that you are taking is one in a sequence
of courses. It has been placed where it is because that
course's material is derived from material from one or more
earlier courses. Make sure that you have access to
textbooks of your earlier courses. (If you're a little bit
inclined to take courses out of order, forget it!)
The material within a given course is often
sequential. This is especially true of Accounting I (ACCT200). That is, the material covered early in the course is
necessary to do problems covered later in the course. If you
don't understand the first few chapters of the textbook, you
need to go back and study those chapters before going on
to later ones.
Determine the scope of the course. It's not unusual for
particular chapters or particular sections of chapters to be
deleted from the scope of a course.
Practice, practice, practice. There is tremendous value
in going over as many problems as you can.
You're trying to learn as many points as you can. If
you get stuck on a particular point, don't spend a long time
trying to look it up or figure it out. Make a note of it and ask
a friend or the professor about it later.
Novels are meant to be read from beginning to end.
Accounting textbooks are not. Skim the text, use the
index, jump around, read the questions at the end of the
chapter, look at tables and charts, cross-reference things,
and notice the section headings. You're dealing with
technical language: it's not unusual to have to read a given
paragraph several times before you understand it.
We're not in Kansas anymore. In a history class, if you
know 90% of the information about each presidency, war,
historical movement, etc., then you'll probably be fine. In
accounting, you often have to know how to finishthe
problem. This is especially true for multiple-choice exams.
For this reason, it's often better to completely understand
some problems (and not know how to do other problems)
than to have a somewhat vague notion of how to approach
every type of problem. Also, having a strong understanding
of one type of problem will sometimes give you a clue as to

how to approach a seemingly unrelated problem that you

never studied.
Sorry to disappoint you, but accounting isn't exactly
like math. In math, the rules tend to be absolute. In
accounting, many of the rules have exceptions and often
the "final answer" (for example, a recommendation to a
company) depends a great deal on the context of the
problem.
But wait, currency doesn't come in negative
denominations. Get in the habit of asking yourself if your
final answer makes sense in the context of the problem.
Find a partner. Spend part of your study time by yourself
and part of your study time with someone else. A portion of
the study time by yourself can be used to identify what
things you understand and what things you don't. You and
your study partner can trade notes on this and teach each
other. Studies have shown that by teaching others you
ensure that you will recall the information later. The most
important rule about working with someone else: keep to
the task! Work hard to keep to the subject at hand. Interrupt
your partner when he/she starts talking about unrelated
topics.
Learn the vocabulary. There is no quicker tip-off to the
professor that you don't know what you're doing than using
terminology inappropriately. (For example, the clueless
student will typically sprinkle the term "money" liberally
throughout an essay while accounting textbooks seldom use
the term.) Most accounting textbooks have at least one
glossary. Also, most textbooks put the key terms in boldface
type. Do enough reading of the textbooks to understand
how the author uses each important term.
Don't be fatalistic. Yes, accounting is difficult. Yes,
accounting is hard work. Yes, it takes time. No, it's not
impossible. Most good students report having some
breakthrough moments: times when suddenly a range of
topics suddenly make sense. You might be closer than you
think to having one of those breakthroughs.
Develop a sense of curiosity. There are many rules in
accounting which seem at first to be either contradictory or
counterintuitive or both. Try to figure out why the rule exists
and talk to other people about it. The really good students
treat accounting as one big puzzle-game which they expect
to win!
Take some satisfaction in the fact that you're doing
something difficult. Even though accounting is a very
marketable skill, that's not the best reason to study it. The
best reason to study accounting is that it helps develop your
ability to do analytic thinking.
Bad things happen. If nothing else motivates you to
study, remind yourself that it's very possible to get a "D" or
an "F" in an accounting course. This worst-case scenario
plays itself out for some students every semester. Use this
fact as motivation when you are debating whether to study
accounting or to go out for pizza.
A GUIDE FOR STUDENTS STUDYING CCOUNTING
The following study guide is a series of rules and
suggestions
which, if followed, will help you achieve the maximum
results for
your study efforts. Although there is no substitute for HARD
WORK and a DESIRE TO LEARN, most of you can use your
study time
and classroom time more efficiently.
READING THE TEXTBOOK
------------------1. Studying accounting is not like reading a novel or even
like

----------------------------------------------------------studying history, sociology, or economics.

----------------------------------------a. Each assignment in accounting BUILDS on previous
assignments. If you do half-hearted work in Chapter 1 and
2, you
may be confused by Chapter 3 and lost by Chapter 4.
b. Accounting books are condensed. Almost every
sentence is
important. Scan reading just does not work!
2. Read to understand "WHY."
-----------------------a. This is a technical subject, it is logical, and it
requires reasoning.
b. Strive to be able to say, "I understand why they do
that." If you can understand "WHY" in accounting, there is
very
little to memorize.
c. Try to explain every new topic in your own words.
Putting the new ideas into your own words is better that
reciting
the words of the text a hundred times.
3. Work problems to understand "HOW."
--------------------------------a. Even though you understand "why they do that" in
accounting, you must be able to do it yourself. This is a
do-it-yourself course.
b. To be sure that you understand "how" as well as "why,"
work the problems that are shown with the reading
material.
Don't copy the book. Try your own skill and then check your
answers.
4. Remember "why"and "how.
---------------------a. Go back to previous chapters and notes to refresh
your
memory. Rework problems that were difficult for you. Try to
work extra problems that are similar to the assigned
homework.
b. Never wait until examination time to review your
accounting.
The REVIEW-AS-YOU-GO plan produces better results,
doesn't
take as long, and saves all that last minute worry and
sacrifice
of other courses. The forgetting curve is the mirror image
of
the learning curve. You forget as fast as you learn
It is a scientific fact that information that has been
forgotten requires that it be relearned, requiring the same
time
it took to learn it the first time.
5. If there is something you do not understand, prepare
specific questions to ask your instructor. Some students
keep a
notebook of points with which they have questions. PINPOINT THE
ITEMS THAT YOU DO NOT UNDERSTAND. Don't make vague
comments to

your instructor such as "I don't understand any of this

material." Such statements are a strong indication to the
instructor that you have made no attempt to try to
understand,
and will receive very little sympathy or help.

seem to be most important.

WORKING HOMEWORK PROBLEMS

------------------------1. READ THE PROBLEM! Read the instructions and scan
the
problem to see what is ahead.

2. Do not stop with just "getting the idea." Be sure that

you
can work problems without the aid of the book. Practice by
teaching the material to someone else. Study groups of two
or
three students work well for this purpose.

2. Work the problems without "PAGE FLIPPING" back to the

chapter.
a. When in doubt, look back at the chapter -- but NOT
until
you have tried to do the problem on your won. This
indicates
that you do not remember the chapter material. You are not
prepared for an examination.
b. The "PAGE-PLIPPING" method is guaranteed to waste a
maximum of your time and to produce a minimum of
results.
3. Keep up with the class! IT IS EASIER TO KEEP UP THAN
TO
CATCH UP!!
A. Check your problem against the solution presented in
class.
b. Be sure that you understand the correct solution.
4. Note the part of the problem with which you have
difficulty
and ask questions during the classroom session.
MAKE BEST USE OF CLASS TIME
--------------------------1. Classes are never interesting unless you TAKE PART.
2. ALWAYS BE PREPARED before you go to class.
3. DO NOT BE AFRAID TO ASK QUESTIONS. If you have a
question,
at least ten other students probably have the same question
but
are afraid to ask because it might sound like a dumb
question.
4. Students who make FAILING GRADES also fail to attend
classes, fail to pay attention during class, fail to have their
homework,and fail to ask the instructor for help until it is
too
late. And when they do ask, it isn't for help. They go to the
instructor to offer poor excuses for poor performance which
the
instructor has heard from other students over the years.
Remember, when you start your career after graduation,
excuses
won't be a substitute for poor performance; nor will it earn
you
a grade in this course.
PREPARING FOR EXAMS
------------------1. Be specific in your study; concentrate on the things
which

a. Note items that the instructor emphasizes in class.

b. Note homework problems that are assigned.

3. Every exam has an element of speed. Have your

"hows" and
"whys" at your finger tips. If you are slow, you probably
need
to study more.
4. The questions on exams approach the material from a
slightly
different angle to test your ability to REASON AND
UNDERSTAND
rather than your ability to memorize.
5. When taking exams, many points are lost and questions
missed
because the student does not READ THE PROBLEM. This is
especially true with multiple choice questions. Read what
the
question is really asking, not what you think or want it to
ask..AVOID CARELESS ERRORS. On each exam, assume
that you have
made several careless errors and allow enough time at the
end of
the exam to look for them.
6. An excellent strategy to use when taking an exam is to
quickly look through the entire exam and answer all of the
questions that are easy for you. Those are "sure" points
and
help to relieve the pressure when you go back to work on
the more
difficult and time-consuming problems.
7. The greatest weakness in a student's ability to take an
exam
is to keep up a good STEADY PACE without the clock causing
the
student to panic. Remember, when you panic by constantly
thinking about the time factor, the mind closes up on you
and
that ends any chance you have to do well. It is better to
concentrate on answering only 80% of the questions and
getting
them all correct than to answer all of the question and
missing
half of them. Of course it is best to answer all of the
questions
and get them all correct, which is only possible if you
concentrate, keep your composure, and maintain a steady
pace.

END
Accounting Study and Test Taking Tips
Or, ways to avoid looking like this before or during an exam!

Learning the Key Concepts

1. Keep up daily. Each assignment in accounting builds on
previous assignments. If you do not understand Chapter 1,
you will have difficulty in Chapter 2 and may be lost in
Chapter 3. As you are reading, jot down points of
confusion. Ask these questions in class if they are not
clarified.
2. Focus on understanding "why".
a. This is a technical subject with its own set of rules;
however, once you learn the basic rules, accounting is
internally logical.
b. Strive to understand why items are handled in a
certain way. If you can understand why, there is very little
to memorize.
c. Be critical. Ask me to explain the reasons for
accounting methods that you do not understand.
3. Work problems to understand "how"
a. You may be able to understand "why", but you must
also be able to work problems to demonstrate your
understanding.
b. Before beginning a problem, take a moment and
determine how you will set-up the problem. Be neat and
orderly and show all of your work. Developing an orderly
methodology for solving problems will help you to organize
your thoughts and make exam taking less stressful.
Additionally, when partial credit is given, you are more likely
to receive credit if your work is orderly and easy to follow.
c. I will often provide a list of "extra" problems. If you
find that you are having trouble with a particular concept,
work the related extra problems for additional practice.
d. Most accounting texts include demonstration
problems, self tests and key terms at the end of each
chapter. Insure that you are familiar with the key terms
presented and use the other review material to help
improve your understanding of the chapter contents.
Making the Best Use of Class Time
1. Be prepared before you come to class read the assigned
reading material and complete or at least attempt the
homework.
2. Don't be afraid to ask questions. If you are
uncomfortable asking questions in class, ask them after
class or come by my office to discuss them.
3. Attend class and take notes. Taking notes helps you to
remember the material and gives you a feel for the areas
that I think are important. Additionally, I often cover
material in class that is not in the text.
Preparing for and Taking Exams
1. Be sure that you can work problems representing all
concepts covered without the aid of the book or solutions
manual.
2. Know the material. You will not have unlimited time for
the exam. If you have to spend significant time trying to
remember the "hows" and "whys" related to each exam
question or problem, you will have difficulty completing the
exam.
3. Do not expect exam problems and questions to be a
carbon copy of homework problems. The material may be
covered from a different angle to test your ability to reason
and understand, rather than memorize. When studying
consider how concepts covered in homework could be
presented differently. While working homework problems
ask yourself "what if" questions to challenge your
understanding of the material. For example, if the
homework problem reflects a loss situation, ask yourself,
"how would I treat this if it were a gain situation?"
4. At the beginning of the exam, quickly scan the exam to
determine what is on it. Easy problems - do those first.
Problems that you think you may be able to do if you think

about it - do those next. Problems that you swear came

from another course - leave them for last. One of the worst
things you can do is try to solve a problem that you do not
understand first. This may cause you to get bogged down
and confused and may keep you from completing problems
that you do understand. For most students it is wise to
work the problems first and then return to the multiple
choice questions. This allows you to get warmed up on the
problems, preparing your brain for the often more
challenging multiple choice questions.
5. Budget your time appropriately. If a problem is worth
only a few points, do not spend half an hour on it
(regardless of how brilliant your answer, it will still only be
worth those few points).
6. Read the problem carefully. Often points are lost because
the question asked was not fully answered.
7. Show all of your work. I cannot give partial credit without
it.
8. Tips for navigating multiple choice questions (the
following tips are excerpted/adapted from "Gleim CPA
Review, A System for Success", 2007 Edition).
a. Attempt to ignore the answer choices - do not allow
the answer choices to influence your reading of the
question. If four answers are presented, three of them are
incorrect. These incorrect answers are called distractors
and they are called this for a good reason. For
computational items, the distractors are often the result of
common mistakes so do not assume your answer is correct
just because it is listed.
b. Read the question carefully and in its entirety to
determine the precise requirement. DO NOT assume you
know what is being asked based on prior experience in class
or with the homework. You may find it helpful to underline
or circle important information as you read such as dates,
time periods, etc. This will also help you to ignore
extraneous information. Be especially careful when the
requirement is an exception: e.g. "which of the following is
not...."
c. If possible, determine the correct answer before
looking at the answer choices (see a. above)
d. Read the answers choices carefully. Even if the first
answer appears to be correct, do not skip the remaining
choices. As you determine which part of an answer is
incorrect, mark the answer in some way (I cross out the
words/word that make an answer wrong). This process of
elimination is particularly helpful if you are not certain of
the correct answer.
How to Study Accounting
Studying is defined as applying oneself to learning. The
purpose of studying accounting is to obtain the textbook
and technical knowledge of accounting plus the experience
necessary to succeed in the accounting profession.
Research has shown that the greater your involvement in
studying, the more you retain. Retention means how long
you are able to remember the concepts and practices. The
four groups of study activities are shown from the lowest
percentage of retention (about 10%) to the highest level of
retention (about 98%):
Hearing
Seeing
Saying
Doing
Let's also look at why you are studying manual accounting
when you hear so much about the use of the computer to
complete accounting tasks in business. It is true that
computers have become an integral part of accounting.

However, you must first know the basics of accounting, the

language of the profession, and the flow of the accounting
cycle before you can effectively enlist the aid of a computer.
A computer is only a tool to perform routine accounting
tasks and print the results more quickly and attractively.
Now, let's begin our journey learning manual accounting. To
do so, we shall work our way through the hierarchy of
retention.
Hearing alone will only take you to the lowest level of
retention. This means that if the only activity you enlist in
your learning process is listening, you will retain very little.
However, this does not mean that listening is not important
as a learning tool. There are several things you can do in
the area of listening.
Attend class equipped with paper and pencil to take notes.
Use a tape recorder if this fits your needs and the instructor
agrees. Also, take your textbook to class to refer to as the
presentation progresses.
Be prepared to listen to questions asked and answers given,
as well as classroom discussion.
The second level of retention adds seeing to hearing to
increase the amount you remember. Two re- sources are
critical to this level: your instructor and your textbook.
First, observe your instructor carefully. Take note when
he or she makes references to textbook examples, shows
illustrations on handouts, distributes material on
transparencies or overhead projections, or shows examples
drawn in chalkboard presentations.
Second, know your textbook and what it contains, how it
is structured, and where you can find various tools.
So far, we have looked at only half of the retention
hierarchy. Hearing allows you to retain the least. Hearing
and seeing together increase your chances for retention.
However, if you add saying orverbal participation at the
third level, you will significantly increase what you
remember. There are several ways in which you can
strengthen your learning by hearing the sound of your own
voice speaking about the subject.
Ask questions. Sometimes you may feel confused and feel
unable to formulate a question. Don't let that stop you. Try
to avoid the sweeping negative statement, "I just don't get
this." Narrow your question to the place your understanding
went off the track.
Volunteer answers. Be an active and enthusiastic learner!
Participate in classroom discussions. You may be surprised
how your own life experiences have prepared you for this
course in accounting. You have owned things, owed money,
bought items, sold things, incurred expenses, and earned an
income. You may have filled out a W-4 form when you went
to work for an employer, and received a W-2 form from the
employer at the end of a calendar year. You may have had a
checking account. Each of the activities mentioned are ones
that you will experience in accounting. Your experience is
valuable-share it in class. Use your personal experiences to
visualize accounting tasks. See how each task fits into the
accounting cycle. The discussion questions at the end of
each chapter provide material to spark conversations and
support discussions.
Study with a Partner or group. It will serve not only as a
way to get acquainted, but it will also provide you with
support. The give and take of studying as a team will help
both of you learn. You both win because your voice is a
powerful tool for teaching others as well as strengthening
your own learning.
Finally, outside of class, talk to yourself. Yes, talk to
yourself! For example, study glossary terms aloud, reread
your notes aloud, talk your way through an accounting
transaction. Let your brain hear you. You will decrease your

journalizing and posting errors considerably with this

technique. Don't be bashful. It will be much easier for you to
speak up in class as the terminology becomes more familiar.
Let's add the last retention builder to the hierarchy--doing.
So far, we have investigated
hearing only
hearing plus seeing
hearing plus seeing plus saying
and now,
hearing plus seeing plus saying plus doing.
You may have heard it said that accounting is best learned
through the end of a pencil. In other words, you can read
and listen all you wish, but until you actually do it, it does
not become yours. An analogy might be one of studying to
become a surgeon or an auto mechanic by only reading and
hearing about your profession-until you try it, you do not
have a working knowledge of the subject. Therefore, let me
suggest that you thoughtfully and conscientiously complete
all assignments your instructor makes whether they are
questions, exercises, or problems.
Accounting is like a pyramid. What you learn in each new
chapter builds on knowledge from previous chapters. If the
base of the pyramid is not firmly in place, your accounting
skills will be weak.
To summarize, in looking at "How to Study Accounting," you
have seen that you need to put into force all levels of action
to give yourself the highest level of retention-hearing plus
seeing plus saying plus doing. You have also seen how
important it is that you know your textbook-how it is
structured and where to find the things you need.