Author:

Michael J. Krause MS, CPA (NY & IN) Professor Emeritus Le Moyne College

Financial statement analysis in the 200 level Managerial Accounting course can be used as a final exam event. The event requires student oral presentations to peers and an accompanying written summary report for the instructor.

Such a project designed to provide a capstone experience for the mandatory Business School six credit hour core sequence in Financial / Managerial Accounting. Also, the project makes better use of the scheduled 150 minutes’ final exam period. Students can compete for extra points awarded to the three best presentations as voted by their classmates at the end of the exam period. Specifically, a two-person team analyzes a publicly traded corporation and an industry competitor.

Ultimately, a slide show class presentation made and documented for the instructor in a two-page summary paper. Students must reach a conclusion about the analyzed corporation’s fundamental business prospects in comparison with a competitor using financial and operational ratios and cash flow analysis. Finally, the assignment ends when the student team makes a stock buy, sell or hold recommendation.

After studying student outputs, witnessing student behavior, analyzing student survey responses, and reviewing AICPA Core Competencies, this study concludes that a financial statement analysis project as s final exam event makes for a memorable and effective student experience at the end of a required six-hour introductory accounting course sequence.

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