While some things are going through significant change, some things in accounting remain the same today as they were thirty or even five hundred years ago. Assets still equal liabilities plus owner’s equity; net income still equals revenues-expenses; and what you own still equals what you started with plus what you added less what you took out. The balance sheet, income statement, and statement of owner’s capital have changed very little through the years.

In this article,  the author discusses the “essence of accounting” and describes a teaching method that he believes helps students better understand accounting for pensions using the “account and amount” method of teaching accounting.

This article is from the Accounting Instructors’ Report, an electronic journal that provides teaching tips and insights to those who teach accounting and other business courses.


W. Terry Dancer, Ph.D., Associate Professor of Accounting, Arkansas State University


Read The Essence of Accounting.