Accounting Study Groups and Test Preparation

Study Groups

In many accounting courses much of the work is done in groups. It is very important that students form study groups and attend those meetings, being fully prepared to participate and contribute meaningfully (M.B. Harms, CAL).

Accounting study groups may be used for the following tasks:

• summarizing and/or outlining the assigned readings
• learning and practicing problems
• preparing study guides
• making up and answering sample test questions
• quizzing and self-testing

Test Preparations

Test preparation for accounting courses should minimally involve the following strategies: practicing the problems, using appropriate forms, reviewing the text illustrations, making up study guides, reorganizing information, and writing and answering sample questions. Budget adequate time to prepare, especially allowing for short frequent reviews (M.B. Harms, CAL).

PRACTICE THE PROBLEMS

As indicated in another section of this page, it is very important for accounting students to practice problems repeatedly. Work and rework the practice problems given in class, the book, or workbooks. Again, work with other students if necessary.

Use Appropriate Forms

If certain problems require that information be entered into specific forms or ledgers, be sure to practice the problems using those forms. Learn what the columns and rows in the forms represent. Learn where specific types of information are to be entered on the form. Learn what types of information are given and what must be calculated. Try color coding different parts of the forms to aid in learning and memory.

Illustrations

Xerox the illustrations (tables, graphs, diagrams) in the book and study them intently and repeatedly. Be able to label and explain the illustrations.

Study Guides

If the instructor does not provide a study guide, work individually or with other students to develop one. The study guide should summarize the important terms and concepts to be covered as well as the problems to be learned. Study guides help in preparing for objective tests as well as subjective tests containing long-answer essays, short-answer essays, and problems.

An example of a study guide for Managerial Accounting is given below. The items on the study guide may be listed as key words, as in the terms and problems sections of the sample study guide, or they may be phrased as questions, as in the concepts section of the sample study guide.

Managerial Accounting Study Guide Sample

Organize Information and Answers

After compiling a study guide, organize the information that addresses each item (See Accounting Information Organization). Use forms and ledgers, flash cards, flow charts, matrices, outlines, and hierarchies as needed. Ask the instructor, a tutor, or an advanced student to check the problems for completeness and accuracy.

Sample Questions

If the test is more objective, consisting of multiple choice, true-false, and/or fill-ins, practice making up and answering sample questions. Use the bold or italic words in the text as well as the illustrations (tables, graphs, diagrams) in the book for ideas.

If the test is subjective, practice making up essay questions from the notes or try converting section headings in the text into questions. Examples of sample essay questions for Intermediate Accounting are given below.

Sample Essay Questions for Intermediate Accounting:

• What are the advantages of leasing?
• List the four criteria for the lessee for classifying a lease as capital or operating.
• What are the components of minimum lease payments?
• What rate is used for computing the present value of the minimum lease payments?
• How does the lessee determine the length of time for depreciation?
• Describe the correct accounting procedure for an operating lease.
• What are the disadvantages of having to capitalize a lease to the lessee?
• List the capitalization criteria for the lessor.
• What is the distinction between a direct financing lease and a sales type lease?
• How is lease payments receivable computed?
• What is the difference between guaranteed and unguaranteed residual value?
• Describe a sale-leaseback situation.