The Statement of Changes in Financial Position: A Flow-Chart Approach to Teaching Concepts and Procedures.

Abstract

This paper describes a teaching technique designed to help Principles of Accounting and Intermediate Accounting students understand how accounting transactions affect, or why they fail to affect, the statement of changes in financial position. Flow charts have been designed. that have been found useful in assisting students to develop a conceptual understanding of the relationships contained in the statement and in providing an analytical framework that enhances student ability to properly analyze and disclose the effects of various types of accounting transactions.