Understanding types of business transactions

71 2. Transaction that changes assets and expenses type B; firm A pays employee salaries in cash 3. Transaction that changes the asset and liabilities type C; firm A purchases supplies on credit 4. Transaction that changes assets and equity type D; firm A issues common stocks by cash 5. Transaction that changes the asset and revenues type E; firm A earns revenue by cash 6. Transaction that changes expenses type F; firm A makes correcting entries for salary expenses that have been recorded as advertising expenses. 7. Transaction that changes expenses and liabilities type G; firm A receives electricity and phone bills 8. Transaction that changes expenses and equity type H; firm A issues common stocks in which the payment is in the form of services given by the buyer. 9. Transaction that changes the expenses and revenues type I; firm A and firm B do service barter. 10. Transaction that changes liabilities type J; firm A converts its short-term debt into bonds. 11. Transaction that changes liabilities and equity type K; firm A converts its bonds into common stocks 12. Transaction that changes liabilities and revenues type L; firm A recognizes its unearned revenues into revenues. 13. Transaction that changes equity type M; firm A converts its preference stocks into common stocks. 14. Transaction that changes equity and revenues type N; firm A, in the business on advertisement, distributes revenue dividends, and the stockholders directly utilize the dividends. 15. Transaction that changes revenues O; firm A makes correcting entries for consulting revenues that have been recorded as other revenues. 72 By making simulation based on the accounting equation, the authors reveal the limitation of the current financial accounting standards. Several transactions given above – namely types F, H, I, N, and O are rarely found in the accounting literatures. For an education purpose, the most important thing is that the equation simulation will help students understanding the accounting concepts rather than memorizing the rules.

F. INCLUDING MEASUREMENT ISSUES IN ACCOUNTING COURSES

Accounting information should be presented in the monetary units. FASB 1984 has been implemented several different measurements and predicted to be in use for the future. Some accounting measurements used nowadays are; historical cost, current cost, current market value, net realizable value, and present-value of future cash flows. Most accounting text books, unfortunately, hardly ever discuss specifically the measurement topic. The authors so far have not found any literature discussing the accounting measurements in a particular chapter .It was dominantly discussed under other topics, so underestimate behavior among students will occur. Nowadays, the accounting experts have been discussing the impact of the IFRS implementation in the accounting curriculum see Nilsen, 2008. The IFRS uses accounting fair value which demands the students to understand various measurements that have been incorporated into the curriculum or that will be developed in the future. To anticipate the implementation of IFRS in America, Stone in Nilsen 2008 recommends accounting students have strong foundation in finance and economics. Nikolai in Nilsen 2008 mentioned that the University of Missouri is considering combining fair value accounting with IFRS into conceptual- based course because the students needs to develop more expertise. Needles in Nilsen , β008 said ‖ I suspects that we will have a course in valuation related to fair value accounting….‖. Referring to such argumentations, it is essential to discuss about minimal fair value in a separate chapter. 73 It is concluded that the accounting is numeric crunching course. The application of double-entry system which based on mathematics has been proven for almost more than five centuries. When the accounting curriculum development incorporates into the international standard and future purpose, new course ―Accounting εathematics‖, should be given. REFERENCES Adler, R. W. 1999. Five ideas designed to rile everyone who cares about accounting education. Accounting Education: An International Journal Vol 8, No.3: 241 –247. Albrecht, W. S. and R. J. Sack. 2000. Accounting education: Charting the course through a perilous future. Accounting Education Series Vol. No. 16. Florida: American Accounting Association. Alfredson, K., K. Leo, R. Picker, P. Pacter, J. Radford, and V. Wise. 2007. Applying International Financial Reporting Standards: Enhanced Edition. Milton, Queensland: John Wiley Sons Australia Ltd. Anthony, R. N., D. F. Hawkins, and K. A. Merchant. 2007. Accounting: Text and Cases. Twelfth edition. International edition. McGraw-Hill. Bonner, S. E. 1999. Choosing teaching methods based on learning objectives: An integrative framework, Issues in Accounting Education Vol. 14 No. 1: 11 – 40. Boyce, G., S. Williams, A. Kelly and H. Yee. 2001, Fostering deep and elaborative learning and generic soft skill development: The strategic use of case studies in accounting education, Accounting Education: An International Journal Vol. 10, No. 1: 37 –60. Clevenger, N.N., T.B. Clevenger, and J. McElroy. 2006. Shortage of accountants: Is education to blame?, The Journal of Government Financial Management, Summer; 55, 2: 14 –19. David, J. S., H. Maccracken, and P. M. Reckers. 2003. Integrating technology and business process analysis into introductory accounting courses. Issues in Accounting Education Vol. 18, No. 4: 417 –425.