STUDY

TECHNIQUES
ACCOUNTING

FOR

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.
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
want to add to or outline your notes.
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.
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 problemsolving 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 (ACCT-200). 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 worstcase 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 ACCOUNTING
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. PIN-POINT 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.
WORKING HOMEWORK PROBLEMS
------------------------1. READ THE PROBLEM!
Read the
instructions and scan the
problem to see what is ahead.
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
seem to be most important.
a. Note items that the instructor
emphasizes in class.
b. Note homework problems that are
assigned.
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.

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.

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
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

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 setup 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.

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.

How

to

Study

Accounting

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 valuableshare 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 retentionhearing 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.