A Financial Statement Analysis Project for Introductory Financial Accounting
G lobal Perspectives on Accounting Education
Volume 6, 2009, 83-96
A FINANCIAL STATEMENT ANALYSIS
PROJECT FOR INTRODUCTORY
FINANCIAL ACCOUNTING
Marilyn B. Misch
Business Administration Division
Pepperdine University
Malibu, California
USA
Carolyn A. Galantine
Business Administration Division
Pepperdine University
Malibu, California
USA
ABSTRACT
This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project requires students to analyze trends in corporate performance, to evaluate corporate financial decisions, to discuss non-financial statement issues that would be important to potential investors, to compare two companies within an industry, and to make investment recommendations. The project’s requirements are completely detailed on a single page, and the project is applicable to companies in any industry. The project requires only limited introduction in the classroom, is easily adaptable to reflect instructor preferences, and may be used as either an individual or a group assignment.
This paper includes the complete project requirement sheet, a grading rubric, a team evaluation form, examples of items that students might be expected to address in answering the questions posed, comments on the results of employing the project, and additional suggestions for implementation.
Key words: Financial statement analysis, financial decision making, introductory accounting project, accounting case
83
Misch and Galantine
84
INTRODUCTION his paper presents a financial statement analysis project that has been used for more than a decade in a university’s introductory financial accounting courses. The primary goal of the project is to develop students’ technical, analytical, critical thinking and communication skills by requiring students to: analyze key aspects of a company’s financial disclosures; evaluate a company’s financial
Volume 6, 2009, 83-96
A FINANCIAL STATEMENT ANALYSIS
PROJECT FOR INTRODUCTORY
FINANCIAL ACCOUNTING
Marilyn B. Misch
Business Administration Division
Pepperdine University
Malibu, California
USA
Carolyn A. Galantine
Business Administration Division
Pepperdine University
Malibu, California
USA
ABSTRACT
This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project requires students to analyze trends in corporate performance, to evaluate corporate financial decisions, to discuss non-financial statement issues that would be important to potential investors, to compare two companies within an industry, and to make investment recommendations. The project’s requirements are completely detailed on a single page, and the project is applicable to companies in any industry. The project requires only limited introduction in the classroom, is easily adaptable to reflect instructor preferences, and may be used as either an individual or a group assignment.
This paper includes the complete project requirement sheet, a grading rubric, a team evaluation form, examples of items that students might be expected to address in answering the questions posed, comments on the results of employing the project, and additional suggestions for implementation.
Key words: Financial statement analysis, financial decision making, introductory accounting project, accounting case
83
Misch and Galantine
84
INTRODUCTION his paper presents a financial statement analysis project that has been used for more than a decade in a university’s introductory financial accounting courses. The primary goal of the project is to develop students’ technical, analytical, critical thinking and communication skills by requiring students to: analyze key aspects of a company’s financial disclosures; evaluate a company’s financial
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