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Prepared by Phil Olds, Virginia Commonwealth University
Students are often overwhelmed by the amount of information presented in the introductory financial accounting course. By focusing on fundamental concepts in a logical sequence, students are able to comprehend the material fully rather than memorise seemingly unrelated terms and topics. The goal of this manual is to enable students to understand how any given business event affects the financial statements. The financial statements model allows students to visualise the simultaneous impact of business events on all of the key financial statements (the income statement, the balance sheet, and the statement of cash flows). The mechanics of accounting coverage (debits and credits) is delayed until Chapter Four. Instructors have flexibility as to the amount of emphasis they want to place on this topic.