CHAPTER 1: INTRODUCTION

1.1 Introduction

Accountancy is now well established as an elite professional occupation in most parts of the
world and most of this status has been afforded through an association with educational
qualifications. However, while the numbers of students that are undertaking business degrees is
on the rise in most countries, the number of business students that are majoring in accounting has
been decreasing.

In Ireland there has been a huge rise in the number of students undertaking business degrees over
the past decade mostly as a result of economic growth; however the number of students studying
accounting at secondary school has fallen by 66% (Byrne and Flood, 2003). In Australia there has
also been a significant increase in the uptake of business degrees of 49.6% between 1990- 1999
(Worthington and Higgs, 2003), however the number of these business students that are majoring
in accounting is declining both in Australia (Jackling and Calero, 2006) and in the USA (Albrecht
and Sack, 2000).

The declining popularity of accounting amongst business students has been in part attributed to
the negative views of the profession, particularly the stereotypical view that accountants need
good numbers skills (Parker, 2001). In order to understand student’s attitudes towards the
profession, one of the aims of this study is to investigate the factors that influence student’s
choice of accounting at third level. There have been a number of studies carried out examining
what influences a student’s choice of major. These studies have found that the main influencing
factors include interests in the discipline, flexible career opportunities (Paolillo and Estes 1982;
Ahmed et al., 1997). Previous educational experience, including prior studies in accounting
together with personal characteristics such as gender have also been identified with students’
choice of accounting major (Nelson and Vendrzyk, 1996). This study will determine weather
these findings can be replicated in an Irish context.

This study will also take into consideration other topical issues such as accounting education and
its shortcomings, perceptions of the accounting profession amongst accounting majors in Ireland,
and previous accounting experience including accounting at Leaving Cert.

1.2 Research aims and objectives

The main aim of the research is to “What influences the attitudes of accounting students towards
the accounting profession”. This can be broken down into the following research objectives:

 What are the factors that influence a student’s choice of career and decision to pursue
accounting?

Prior literature in the area seems to suggest that gender, educational influences and perceptions of
the profession and the people within the profession are all important factors that will influence a
student to pursue accounting as a career. The aim of this objective is to determine whether these
findings can be replicated in an Irish context.

 To determine the influence of leaving certificate accounting among today’s accounting students.

Since 1990, the number of students sitting the accounting exam for the Leaving Cert. has fallen
dramatically with only 14% of students sitting the exam in 2006. Overall the number of students
taking business exams has fallen by 5% between 2002 and 2006. The decline in popularity of
accounting at Leaving Cert. level represents a huge challenge for the accounting profession, as
this will have a potential influence on the selection of accounting programmes in higher
education. The aim here is to determine how many of the current accounting majors in the North
West have studied accounting for Leaving Cert.
 To investigate students attitudes towards accounting education.

Many academics and practicing accountants have voiced their criticism of accounting education
over the years. They argue that students spend most of their time performing complex calculations
and generating figures and not enough time on what these figures mean or represent. The aim here
is to get the students views on accounting education, and to investigate weather they agree or
disagree with the criticisms.

 Are there gender differences between attitudes to the accounting profession?

Here the author is attempting to build on previous research conducted by Byrne and Willis (2005)
in relation to gender in accounting. Previous research in relation to Ireland suggests that females
have a more precise view of accounting however on an international level this finding is disputed
(Jackling and Calero, 2006).

 When do students make the decision to pursue accounting?

A study carried out by Geiger and Ogilby (2000) in the U.S.A found that the majority of students
decided to pursue accounting as a career during their first year in college. This study will
determine weather these findings apply to Irish accounting students in the north-west.

 To explore the perceptions students have of the accounting profession.

Many authors including Cohen and Hanno (2003), Seamann and Crooker (1999) have reported
that traditional negative perceptions of accountants as being too boring and number orientated
have discouraged more creative individuals from specialising in accounting. This objective will
determine whether these negative perceptions exist among accounting students in Ireland, and if
there are differing perceptions among male and female students.

1.3 Value of the research

The researcher believes that the research will be of value to a number of different institutions for a
number of different reasons.

1. Although there has been a large body of research generated in this area in an international
context, little research of this nature exists in Ireland.
2. Second, the research will provide some insight into student’s attitudes towards the
accounting profession and towards accounting education, which will be of interest to the
professional accounting bodies as the struggle to attract the ‘best and brightest’ students to
the accountancy profession.
3. The research will also take into consideration accounting education. This will be of use to
accounting educators and educational institutions as the research will investigate the
student’s views regarding accounting education.

For these reasons the researcher believes the research has merit, and will be of benefit to those
within the accounting community.

1.4 Limitations of the research

The research presents itself with certain limitations which could not be overcome. These
limitations include the following:

1. Time, the researcher only had one year to complete the study.
2. Financial resources were limited which affected the research process.
3. Due to other course commitments, the primary research had to be gathered

during the months June and July. This affected the response rate as a lot of students went
on holiday during these months. Had the research been carried out during the academic
year then the response rate may have been much greater.

4. The size of the population. Although the results were representative of students in the north-
west, it is extremely interpretive whether the results could be generalised to reflect all Irish
accounting students.
CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

This section of the study will deal with all the relevant literature regarding the factors that
influence major selection, accounting education, what shapes a student’s perception of the
accounting profession and the ‘choice of major’ decision.

Indeed there have been previous studies which have examined the attitudes of students towards
accounting and the influencing factors that contribute to a students choice of major (Mc Dowell
and Jackling, 2007; Geiger and Ogilby, 2000). These influencing factors include extrinsic and
intrinsic interests in the discipline. Extrinsic factors such as perceived benefits, opportunities for
advancement have been found to be important factors in a student’s choice of major (Felton et al.
1995). A study carried out by Byrne and Willis (2005) cited educational experience in accounting
together with personal characteristics such as gender as factors which will influence a student’s
choice of college major.

Perceptions of the accounting profession and the stereotypical view of the accountant is a factor
which has been cited by several authors including Geiger and Oligby (2000), Marriot and Marriot
(2003), Freidman and Lynne (2000), Cory (1992) as being a negative factor that will deter a
business student from majoring in accounting.

This research will take into consideration all the aforementioned factors; however it will also take
into account the influence of the accounting education and how the criticisms of accounting
education are affecting graduates that are pursuing careers in accounting. This is an area which
has never been researched before in Ireland. . Finally the review will cover literature relating to
‘timing of the major decision’; this is an American term which basically means ‘when do
students make the decision to pursue a career in accounting’? A study conducted by Geiger

and Oligby (2000) found that the majority of students will decide on a career by the time they
finish secondary school.

2.2 What is an accountant?

Accountants are of vital importance to the efficient operation of an economy. They work with
businesses of every size to set up and maintain the systems that collect and report information
about business activity. They play a critical role in regulatory functions of government, including
day to day operations, taxation, and detection of crime. An accountant can be defined as ‘one that
keeps audits and inspects the financial records of individuals or businesses and prepares financial
and tax reports’ (Houghton, 2004). Beyond carrying out the fundamental tasks of their work i.e.
preparing, analysing and verifying financial documents in order to provide information to clients-
many accountants are now required to possess a wide range of knowledge and skills.

The concept of accounting can be defined as the process of ‘recording, summarising, and
allocating all items of income and expense of the company and analysing, verifying and reporting
the results’ (Gorman, 2006)
2.3 The accounting profession and the ICAI: a brief history

Firstly the author will briefly discuss the accounting profession in Ireland. This is necessary to
give the reader an understanding of the increasing need for accountants, as a result of the
economic climate which prevailed in the early 1990’s.

Traditionally the accounting profession has been associated with institutional fragmentation, with
a range of bodies or associations representing accountants in any one country, Anderson-Gough,
Grey and Robinson (1998), McCabe and Mc Hugh (1992). This type of fragmentation is very
much evident in Ireland as there are four main accountancy bodies representing the majority of
accountants: The Institute of Chartered Accountants in Ireland (ICAI), The Institute of Certified

Public Accountants in Ireland (CPA), The Chartered Institute of Management Accountants in

Ireland and the Association of Chartered Certified Accountants.

A detailed description of all of these bodies is outside the scope of this paper; therefore I have
chosen to look at the Institute of Chartered Accountants in Ireland. The reason for doing so is
simple, The ICAI is an Irish based and managed organisation, unlike CIMA and the ACCA which
operate in Ireland as divisions of British bodies. The Institute of Certified Public Accountants is
also an Irish based and managed organisation however, they are much smaller with only 5000
members including students. The ICAI has always been the largest and longest established
professional body in Ireland.

The ICAI received its royal charter in 1888, and at its formation had 42 members where as today
it has some 17000 members and 6500 students. Unlike their British counterparts the ICAS and
the ICAEW which grew rapidly soon after their formation, the ICAI did not experience any

2.4 Accounting education

This section will cover accounting education in Ireland at second level, third level and at
professional level. Also discussed will be the current state of accounting education, taking into
consideration the criticisms levelled at accounting education in the higher education sector and, as
a result, the challenges facing accounting educators and professional bodies.

2.4.1 Second level education

Second level education in Ireland typically serves students from the ages of 12-18. It consists of
the junior certificate and the leaving certificate. For the purpose of this study, we will focus on
the leaving certificate examinations, as it is at this level students are first exposed to an
accounting course. As stated by the

Department of Education and Science in 2001, the objective of the leaving certificate is to prepare
pupils for the immediate entry into open society or for proceeding to further education. Most of
the students who sit the leaving certificate examinations will undertake three core subjects;
namely English, Irish, and Mathematics. They then choose four other subjects from the other
subject groups which include Languages, Sciences, Business Studies, Applied Sciences and
Social Studies.

The Leaving Certificate is a highly competitive set of exams. The reason for this is the demand
for university places greatly out numbers supply. Students who are looking to progress into
higher education will generally complete as many higher level exam papers as possible. The
higher level papers are more testing than the ordinary level papers because of the more extensive
syllabus and the greater level of difficulty in the questions posed.
2.4.2 Accounting within second level education

Prior to 1969 there was only one business subject on offer on the Leaving Cert programme, this
subject combined elements of accounting, business practice and industrial history (Byrne and
Flood 2003). Accounting as a separate subject was firstly introduced in 1971. It was revised in
1995 as part of a general review of the entire Leaving Cert programme. As a result management
accounting topics were introduced into the syllabus for the first time (Byrne and Flood 2003).

The popularity of accounting at Leaving Cert has varied significantly over the years. The first
accounting exam was in 1971 and 28% of all Leaving Cert students sat the exam that year. The
percentage declined until 1974 when it started an upward trend and peaked in 1970 with 29% of
all students sitting the accounting exam that year (Byrne and flood 2003). Since 1990,
accounting’s popularity has been declining with only 14% of students taking the accounting
exam in 2006 (FAS, 2007). The reasons for this are unclear, though anecdotal evidence seems
to suggest that Leaving Cert students perceive that it is more difficult to achieve a high grade in
accounting than in other subjects. However, a

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review of the examination results show that since the introduction of the new syllabus, the
percentage of students achieving ‘A’ grades in accounting is higher than many of the more
popular optional subjects (Byrne and Willis 2001). Teachers contend that the syllabus for junior
cert. business studies, which includes basic accounting, does not provide a good foundation for
leaving certificate accounting and it fails to stimulate an enthusiasm for the subject (Byrne and
Willis, 2002). There should be concern within the higher education and the accounting
profession regarding the continuing decline in the popularity of leaving cert accounting, given
its potential influence on the selection of accounting programmes in higher education. Recent
studies suggest that students are making career decisions earlier, and that many of them choose
their career before completing their second level education (Nelson and Vendrzyk, 1996; Smyth
and Hamman, 2000), therefore a decline in the numbers at leaving cert. will ultimately mean a
decline in the total number of students being attracted to the profession.

2.5 Third level education

Currently, approximately 50% of all Irish school leavers proceed to higher education with
around half of these taking degree level programmes (Department of Education and Science,
2002). Furthermore, the investment in higher education in the last 30 years has resulted in
Ireland having one of the highest levels of higher education attainment among OECD countries.
Indeed in 1996/1997 a greater percentage of 25-27 year olds in Ireland held higher education
qualifications than in any other EU country (White, 2001).

Today, higher education institutions in Ireland comprise universities, institutes of technology,

colleges of education and a number of independent private colleges.

Despite all this, the rate of growth of accounting and business programmes within higher
education was quite slow, thus reflecting the stagnation of the Irish economy

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(Byrne and Flood, 2003). The arrival of the ‘Celtic tiger’ in the early 1990’s led to huge
development in the Irish economy and a huge diversification in Irish business activity. Suddenly
Irish businesses found themselves needing more versatile and needing more skilled graduates.
This forced the Universities and the Institutes of technology to develop their business faculties
(White, 2001). The development of the IFSC also played a part in business/accounting degrees
becoming a popular choice for students during the 1980’s and the 1990’s.

Today, all of the Irish Universities and Institutes of Technology, with the exception of NUI
Maynooth offer an accounting degree or a major in accounting and many of the other higher
education institutions offer accounting programmes at certificate, diploma or degree level. To
cope with the expansion in accounting education, the 1980.s saw a huge rise in the number of
full time accounting academics. The Irish accounting directory 2000 (Clarke and Brabazon,
2000) lists 57 accounting academics employed in the seven Irish universities, 86% of whom
hold a professional accountancy qualification, the majority (57%) being members of the ICAI.
The largest accounting department is UCD with twelve staff and the smallest is Trinity with two
staff (Byrne and Flood, 2003).

2.6 The link between education and professional status

Today, all of the Irish Universities and Institutes of Technology, with the exception of NUI
Maynooth offer an accounting degree or a major in accounting and many of the other higher
education institutions offer accounting programmes at certificate, diploma or degree level. To
cope with the expansion in accounting education, the 1980.s saw a huge rise in the number of
full time accounting academics. The Irish accounting directory 2000 (Clarke and Brabazon,
2000) lists 57 accounting academics employed in the seven Irish universities, 86% of whom
hold a professional accountancy qualification, the majority (57%) being members of the
ICAI. The largest accounting department is UCD with twelve staff and the smallest is Trinity
with two staff (Byrne and Flood, 2003).

2.6 The link between education and professional status

In order to become a member of a professional accountancy body, students are required to

complete a training contract, normally of 3 1⁄2 years in length while at the same time passing
a suite of examinations. This is the case with the ICAI; however they also have entry routes
for non-business/accounting graduates and for school leavers with a Leaving Certificate.

The current examination system of the ICAI means that there are three levels of professional
exams to complete; CAP1, CAP2, and the Final Admitting Exam (FAE). Students with an
undergraduate degree in business/accounting will be exempt from the CAP1 exams.
Graduates from a specialised post-graduate accounting course may gain exemptions from
CAP2. However everyone regardless of entry route will have to sit the FAE.

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The number of students with business/accounting degrees dominated the student intake within
the ICAI. According to figures published by the body in 2000, 73% of the students held
relevant business/accounting degrees (see appendices). The proportion of graduate recruits to
accountancy bodies with high quality degrees has continued to rise (POBA, 2004). The
majority of students registered with the chartered accountancy bodies (ICAS, ICAEW, ICAI)
have first or upper second class honours degrees (FRC, 2003) and 89% of graduates that
entered the chartered accountant programme with ICAS in 2003 had achieved this. Indeed
this is not the case with all accountancy bodies, trainees with accountancy bodies the ACCA
and CIMA display a significantly different educational profile with only 50% of the student
intake being graduates (FRC, 2003; POBA, 2005; POB 2006).

Many authors argue that this is important for the profession; that in order to maintain its elite
professional status it must be associated with educational qualifications (Larson, 1977;
Freidson, 1986; Burrage, 1990). This is a view shared by the Professional Oversight Body for
Accountancy who stated “Many of the best graduates are attracted to become trainees with
the biggest firms and the quality of those entering through this route is undoubtedly critical to
the success of the profession and should not be neglected” (POBA, 2004, p.9). The ICAS also
supported this view and added that any erosion of this link may influence the career choices
of potential recruits (ICAS 2003).
2.7 Criticisms of accounting education

Having explored the evolution of accounting education within the second level, third level and
professional system, it is also necessary to evaluate the current state of accounting education with
reference to the literature.

The criticisms of accounting education at academic institutions are both varied and manifold.
One of the more common criticisms is that accounting education focuses on fact based learning;
that students spend a disproportionate amount of their time and effort memorising accounting and
auditing standards, law and tax regulations which make them experts in the technicalities of
accounting (Albrecht and Sack 2000). The study by Albrecht and Sack (2000) is a landmark one
in the area of accounting education. It contained the following facts:

  The number and quality of students electing to major in accounting is decreasing

rapidly. Students are telling us by their choice of major that they do not perceive an
accounting degree to be as valuable as it used to be or as valuable as other business
degrees.
  Both practicing accountants and accounting educators, most of whom have accounting
degrees, would not major in accounting if pursuing their education over again.
  Accounting leaders and practicing accountants are telling us that accounting education,
as currently structured, is outdated, broken, and needs to be modified significantly.

Lee (2005) supports this view claiming accountants have been more concerned with
accounting monetary numbers than with what they represent or what they correspond.
Ovalle (2006) is also in agreement; claiming accounting education overloads students
with static skills and knowledge and as a result students and accountants are blinded to the
failings and deficiencies that are inherent within the profession.

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A similar view is held by Henderson (2001) who concluded that such a concentration of technical
skills duplicated in both degree programmes and professional education can only serve to erode
student’s likelihood of developing critical thinking.

Such arguments obviously do have merit, however it is important to bear in mind that the very
nature of accounting as a discipline means that accountants/students have to be able to retain high
volumes of technical information, otherwise how are they going to be able to perform every day
tasks such as producing accounts, performing audits, or advising clients in relation to taxation
and other business related issues?

Another common criticism of accounting education is concerned with environmental accounting

and the societal role of the accountant. Inanga and Schneider (2005) argue that researchers,
educators, practitioners and professional bodies all have their own agendas serving their own
self-interests and as a result the effectiveness of promoting environmental accounting in
accounting education is severely curtailed.

One would hope that in the wake of major accounting scandals which have had a serious impact
on the reputation of the accounting profession, that environmental accounting and ethical issues
would be a top priority for accounting educators and professional bodies.

McPhail (2005) as cited by Ovalle (2006 p.43) had this issue in mind when he stated:

“If the professional institutes in the U.K and the U.S.A continue to provide accounting students
with little help in understanding the role of accounting within the broader political economy; no
critical appreciation of the moral values upon which the system is based; and little help in
developing the kind of ethical/emotional capabilities required to engage with ethical issues they
will face as practicing accountants; then another Enron is not only possible, but inevitable”

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The literature seems to suggest that this is the case; that accounting education is narrow and
although students have in-depth knowledge of the technical aspects of accounting, they lack the
various other characteristics which are necessary for professionals to go about their daily work.
This clearly has implications for the profession as a whole.

However academics are not the only one’s voicing their concerns over accounting education. So
too are the partners in some of Irelands biggest accounting firms. Sinead Donovan, a partner with
accountancy firm Grant Thornton recently spoke of the shortcomings in accounting education in
However academics are not the only one’s voicing their concerns over accounting education. So
too are the partners in some of Irelands biggest accounting firms. Sinead Donovan, a partner with
accountancy firm Grant Thornton recently spoke of the shortcomings in accounting education in
an interview with Accountancy Ireland magazine. In the interview she stated; “having a sound
grasp of the double entry system is critical to being an effective accountant. However complex a
problem or an issue it will always come down to the debits or credits. That is why it is so crucial
in accounting education that we continue to educate students in double entry. I have noticed that
some of the trainees from some of the universities do not have the best grounding in double
entry. They could go out and do a thesis but they would find it difficult to do bank
reconciliations. This is something that the accounting profession has got to get to grips with”
(Accountancy Ireland, 2005). This proves that shortcomings in accounting education do exist and
that a gap exists between what the students are learning in third level education and what is
expected of them in the workplace. This presents huge challenges for the accounting profession
and for the colleges and universities. The profession must address these issues if they hope to
recruit the best and the brightest students into the accounting profession.

2.8 The need for change

The study carried out by Albrecht and Sack (2000) highlighted these issues and also expressed
concern regarding the survival of accounting education and the professions ability to attract and
retain the ‘best and brightest’ students.

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As a result the Accounting Education Change Commission (AECC) was established to redirect
the structure and content of accounting education in the U.S. Soon after other jurisdictions
followed and the call for accounting education change became a global one. For example, in
Australia the Matthews Report was Published (Matthews, Jackson and Brown 1990). In the U.K
the Q.A.A subject benchmarks for accounting include cognitive abilities and generic skills such
as communication skills, the capacity for critical evaluation and the capabilities for independents
and self-managed learning (QAA, 2000). In Ireland the pressure for change came from the
Higher Education Authority (HEA) and the Irish Universities Quality Board (IUQB).

All of this is good news for students, as these changes aim to address the way in which
accounting is taught in academic institutions, thus resulting in a highly skilled and competent
graduate.

So far the response has been positive with the number of accounting degrees awarded in the U.S
rising by 11% in 2003, according to the Wall Street Journal. In Australia the number of
professional accountants rose by 40,000 in the ten years 1996-2006. In Ireland the demand for
Business/Accounting degrees also remains high. However, the deterioration in the economy
creates further challenges for accounting educators. The emphasis should now be to equip
graduates with more transferable skills that will distinguish them in an increasingly competitive
market place and will also enhance their career flexibility (Byrne and Flood 2003).
2.9 Prior studies in accounting literature

Here the author will discuss the prior studies in accounting literature which will take into account
both intrinsic and extrinsic factors, and also the theory based studies which have received a lot of
attention in prior literature.

2.9.1 Gender based studies

Turner and Bowen (1999) examined the gender gap in choice of major, specifically the under-
representation of women in the sciences and engineering in the 1990s. They suggest that this
phenomenon may be cultural and that gender and socialisation skills may lead males and females
to have different career choice preferences. The Taylor Report (2000) states that compared to
college students in general, accounting majors are more likely to be female.

A study conducted by Leppel et al. (2001) found that female students are more likely to be
influenced in choice of major by a professional father, and that women from “high”
socioeconomic backgrounds are less likely to major in business. Research undertaken by Nelson
and Vendrzyk (1996) in the USA demonstrated that females had more favourable attitudes
towards accounting than male students. A study carried out in Ireland by Byrne and Willis (2005)
supports this view concluding that female secondary school students viewed accounting as more
definite, precise and compliance driven than males. Lowe and Simons (1997) found that female
accounting majors ranked “the inherent nature of the subject matter” more important than male
accounting majors, and that females in their study placed a higher value on the “ability to succeed
academically in the major”.

A study conducted by Jackling and Calero (2006) however did not find any significant difference
in females and males in their interest in becoming an accountant.

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2.9.2 Personal influences

A Study carried out by Noland et al. (2003) found that student’s choosing a career in accounting
considered the following factors important; long-term salary opportunities, starting salary and
prestige of the profession. This is consistent with Simons et al. (2003) who concluded that the
most important factors a student considered when choosing a major were; financial rewards (with
long term earnings outweighing initial earnings), job availability, and interest in the major/career.
A study conducted by Galotti and Kozberg (1987) listed the

following selecting a

1. 2. 3. 4.

four factors as the most important in influencing students when college major;

How much I care about the subject

Something with good career opportunities Something I will do well in
What I want to do with this major after college

A number of studies have also indicated that job satisfaction is important in accounting students
career choice (Ahmed et al. 1997, Auyeung and Sands 1997). Jackling and Calero (2006) found
that enjoyment of the subject plays a significant part in the choice of major decision. This finding
is supported by the work of Saemann and Crooker (1999) who also found that students are more
likely to pursue accounting when they considered the subject interesting and enjoyable.

As well as the factors mentioned above Galotti (1999) also mentions that parental advice and
influence plays a significant part in the student’s choice of major.
This is consistent with the work of Cangelosi et al. (1985) and Harrison (1998) who find that it is
not only students own perceptions that affect their career decision but also the perceptions of
those around them i.e. by an accounting lecturer from college, by parents or by friends.

A survey carried out by Smith (2005) found that accounting instructors have a strong influence
on the student’s decision to pursue further studies in accounting. The research also found that
students are likely to be influenced by their family. A

19
A survey carried out by Smith (2005) found that accounting instructors have a strong influence on
the student’s decision to pursue further studies in accounting. The research also found that students
are likely to be influenced by their family. A

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significant portion of those surveyed choose to major in accounting because they knew an
accountant.

2.9.3 Theory based studies

As well as the studies that look at the relative importance of selected factors used in the decision
making process, it is also necessary to discuss the theory based studies. One social psychological
model in particular has received a lot of attention in prior accounting literature. The Theory of
reasoned action was coined by Ajzen and Fishbein back in the early 1980’s and over the last 20
years or so, different variations of this theory have been used to determine what exactly influences
one to choose accounting as a career (Cohen and Hano 1993, Felton et al.1994).

The theory of reasoned action states that a person’s behaviour is a function of:

1. a) the individuals attitude toward the behaviour and

2. b) his/her perception of social pressure to do that behaviour

Attitude in this context is the belief that behaviour will lead to certain outcomes and social pressure
is the belief that specific individuals or groups approve or disapprove of the behaviour. Cohen and
Hano (1993) believed that use of a formal model would help to identify the existence of a
theoretical relationship between underlying cognitive constructs and the examined behaviour. The
model was used to identify specific beliefs that students who had chosen to major in accounting as
opposed to students who had chosen other business majors. Their research found that non-
accounting majors had chosen other disciplines as they viewed accounting as too quantitative and
boring, they also had a strong negative perception of the subject matter of accounting.

Felton et al (1994) used the theory of reasoned action with regard to choosing a career in chartered
accountancy. Felton found that both accounting and non- accounting majors ranked long term
earnings as the most important criterion, followed by variety in the work and flexibility of career
options.

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2.10 Perceptions of accounting

While every profession is concerned with its public image, perhaps none has devoted more
attention to this subject in recent years than the accounting profession. For many years the
accounting profession has agonised over what is perceived as a dull, boring image, fearful that this
negative perception will impact upon the professions ability to attract the “best and brightest”
students. In this section of the literature review the author will discuss what influences a student’s
view of accounting under two broad headings:

  the introductory course in accounting

  stereotypical view of accountants
1. 2.10.1 The introductory course in accounting

The importance of the first course in accounting in shaping a student’s perception of the
accounting profession was first highlighted by the Accounting Education Change
Commission (AECC). The AECC argued that the course shapes their perceptions of (1) the
profession, (2) the aptitudes and skills required for successful careers in accounting, and (3)
the nature of career opportunities in accounting.

Many other studies have since examined various aspects of the first course in accounting.
Wooten (1998), Eskew and Faley (1998) looked at the possible effect of gender on accounting
course performance. There is also a considerable amount of research concerning the content
of the first course in accounting (AECC, 1992; Baldwin and Ingram, 1991).

A study carried out by Friedman (1995) in Canada asked accounting students, both at the
beginning and the end of their course, the perceived importance of 12 skills on their ability to
perform well in introductory accounting. However this research did not directly assess
student’s perceptions of the introductory accounting course itself.

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A study carried out by Geiger and Ogilby (2000) investigated student’s perceptions of the first
accounting course. Their research found that although intending accounting majors perceived
the course more positively than non- accounting majors, both groups of students had fairly
positive perceptions of the introductory accounting course. Interestingly the research found
significant variation in changed student perceptions across individual instructors. This
particular aspect of the findings is consistent with the work of Gangelosi et al. (1985) and
Harrison (1998), who argued that students will be influenced not only by their own
perceptions but by the perceptions of the people around them.

A study by Saemann and Crooker (1999) found that the traditional perceptions of precision
and order in the profession discourage more creative individuals from pursuing a major in
business or accounting. They stated; “If there is a need to attract these (more creative)
individuals, college accounting courses will require a new focus with less emphasis on
preciseness. Greater efforts will also be necessary to convince high school students that the
profession does not require as much precision as it may seem” (Saemann and Crooker,1999
p.15).

2.10.2 Stereotypical view of accountants

Given the significance that stereotyping plays for any social group, accounting researchers
have devoted much attention to investigating the public image of the profession. Research
conducted by Freidman and Lyne (2000) found that the ‘beancounter’ image seemed to be
growing during the period from 1979 from 1995.

Hunt et al. (2004) found that accounting students viewed the profession more favourably
compared to other business majors, regarding accountants as leaders and valued business
advisors. Interestingly all majors reported that the media (movies and television) provided a
negative image of accountants.

Brass (2004) argues that accountants are to blame for the misconceptions as they never
attempted to correct the ‘scorekeeping’ image which is widely held. This argument is
somewhat backed up by Bougen (1994). He related the stereotype to

22

the relationship the accountant had with bookkeeping in that it was a reflection of the work
accountants carried out and not the actual accountant. Accountants must move forward and
compete with others in the changing environment, Parker (2000) states ‘those accountants that
remain content to carry out routine accountant compliance work are set for sub-ordinate
corporate career prospects, declining customer bases and ultimately early retirement’.
According to the AICPA (2000) most secondary school and college students cannot
accurately describe the work of accountants, their responsibilities or the opportunities
available in the accounting profession.

The main concern here for the accounting profession is how they can expect to attract the
‘best and brightest’ students when the perception of the accounting profession among students
and the other professions is so poor. In a study carried out by Cory (1992) the objective of the
research was to determine if there was a relationship between the quality and quantity of
The main concern here for the accounting profession is how they can expect to attract the ‘best and
brightest’ students when the perception of the accounting profession among students and the other
professions is so poor. In a study carried out by Cory (1992) the objective of the research was to
determine if there was a relationship between the quality and quantity of students entering the
profession and the stereotypical accountant. The research found that the current stereotype may
attract students who will perpetuate the accountant’s image and deter those who actually have the
qualities for which the profession is actively searching.

An interesting study conducted by Dimnick and Felton (2005) examined how the accountant is
portrayed in cinema, as cinema is an influential medium that reflects and shapes social attitudes.
Their research suggests that the accounting stereotype is not as straightforward as one would think.
The research found that movies presented several different stereotypes of the accountant which
ranged from eccentric to villain to hero. Of the 168 coded characters they used in their analysis
only 7% fell into the eccentric category. This is the category that prior research suggests is the
widely held perception of accountants (Cory 1992; Freidman and Lyne 2000). Surprisingly they
found that while 23% fell into the villain i.e. Nick Leeson in Rogue Trader, 70% fell into more
sympathetic stereotypes.

23

2.11 The decision to pursue accounting

Several studies have been conducted in an attempt to establish when students actually make the
decision to pursue accounting. In the literature this is commonly referred to as the ‘choice of
major’ decision.

Nelson et al. (2002) found that the second year in college showed the highest percentage of
responses to the question “at what point did you decide to major in accounting”. The next highest
response was at second level. These findings are consistent with the work of Geiger and Oligby
(2000) who found that the majority of students made the decision during the first accounting
course.

A study conducted in this area by Paolillo and Estes (1982) found that while 23% of students made
the decision to major in accounting at second level, 40% of students made the decision in either
their first or second year at college.

Again these studies support the view of the Accounting Education Change Commission (AECC)
that the first course in accounting will shape a students attitude towards the accounting profession.

2.12 Conclusion

Investigating the attitudes of accounting students towards the accounting profession has produced a
large body of research. This section has focused on the literature related to factors such as; ‘why
and when students decide to major in accounting’, ‘what shapes their perceptions of the
accounting’, and ‘accounting education ‘.

From reviewing the literature it’s fair to say that there any number of factors that will influence a
students decision to study accounting. Research from theory based and non-theory based studies
suggest that “financial rewards”, “interest in the discipline”, “job availability” and the “influences
of parents and teachers” are all factors that will impact on a student’s decision. The research also
suggests that the students are making career decisions earlier in life.

24

With regard to accounting education, the literature suggests that both academics and practitioners
are united in their belief that accounting education has many shortcomings.

The bulk of this literature has come from studies that were conducted in America, Australia and
even in Japan. In Ireland, little research exists regarding accounting student’s attitudes and
perceptions of the profession. This is why I have chosen to conduct this type of study in Ireland.
By surveying third level accounting students from the colleges and universities in the north-west, I
hope to provide greater insight into as to what influences the attitudes of accounting students in
Ireland towards the accounting profession.
With regard to accounting education, the literature suggests that both academics and
practitioners are united in their belief that accounting education has many shortcomings.

The bulk of this literature has come from studies that were conducted in America, Australia and
even in Japan. In Ireland, little research exists regarding accounting student’s attitudes and
perceptions of the profession. This is why I have chosen to conduct this type of study in Ireland.
By surveying third level accounting students from the colleges and universities in the north-
west, I hope to provide greater insight into as to what influences the attitudes of accounting
students in Ireland towards the accounting profession.

25

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Introduction

This chapter will identify and explain the methodology adopted which will include a description
of the research problem, research process and the data collection methods used. The research
methodology describes “an approach to a problem that can be put into practice in a research
programme or process, which formally defines an operational framework within which the facts
are placed so that there meaning may be seen more clearly”. (Remenyi et al., 2003)

There is no consensus in the literature on how research should be defined; however there seems
to be consensus that it:

  Is a process of enquiry and investigation

  Is systematic and methodical
  Increases knowledge (Collis and Hussey, 2003)

The first step in conducting research is to identify an area of interest. The literature
searches suggest that what influences students to pursue accounting at third level and at
professional level is of considerable interest to accounting educators and the accounting
community as a whole. This is reflected in the large amounts of academic journal
articles and articles from professional accountancy bodies attempting to attract the best
and brightest students.

3.2 Research process

The research undertaken was instigated by an explicit review of the literature in the
specific research area. After all secondary sources of information were explored and
reviewed; primary research was carried out through the following research process.

26

3.2.1Research problem

The aim of the research was to investigate the factors that influence students to pursue
accounting, their attitudes towards the accounting profession and accounting education. Many
studies have been carried out in this area in an international context, however in Ireland; it is an
area which is remarkably under researched.

3.2.2 Research question and objectives

The main research question was to investigate the attitudes of accounting students towards the
accounting profession. This was broken down into the following objectives:

  What are the factors that influence a student to pursue accounting?

  How many accounting majors have studied accounting at second level?
  To investigate students attitudes towards accounting education.
  Are there gender differences between attitudes to the accounting profession?
  When do students make the decision to pursue accounting?
  What are the implications for educators and professional bodies?

3.2.3 Research philosophy

The research philosophy concerns the way in which the researcher thinks about the
1. 3.2.3 Research philosophy

The research philosophy concerns the way in which the researcher thinks about the
development of the research and this then affects the way we go about doing research. The
research paradigm is the general approach to the research. Collis and Hussey (2003, p46)
state that the term ‘paradigm’ refers to;

‘The process of scientific practice based on peoples philosophies and assumptions about
the world and the nature of knowledge....about how research should be conducted.’

27

The research is dominated mainly by two research paradigms, namely positivism and
interpretivism. They are different if not, mutually exclusive views about the way in which
knowledge is developed and judged as being acceptable. (Saunders et al. 2007).

3.2.3.1 Positivism

Positivism, also referred to as the traditional scientific approach, is when there is only one
truth that we all agree upon. It is a structured approach to gathering data, which is analysed
and interpreted in a factual statistical manner.

Saunders et al. (2007) point out that if the research philosophy reflects the principles of
positivism then the researcher should adopt the philosophical stance of the natural scientist
Positivism implies that the researcher is:

‘Working with an observable social reality and that the end product of such research can be
the derivation of laws of law-like generalisations similar to those produced by the physical
and natural scientists’ (Remenyi et al; 2003, p32)

Saunders et al. (2003) and Remenyi et al (2003) refer to the researcher as an objective
analyst in this tradition. Positivism is based on the concept that other similar studies should
be comparable and achieve similar results.

However according to Saunders et al. (2003) the researchers critical of positivism argue
that the rich insights into this complex world are lost if such complexity is reduced entirely
to a series of law like generalisations. Critics of positivism believe that it is impossible to
treat people as being separate from their social contexts and they cannot be understood
without examining the perceptions they have of their own activities. They also believe that
the highly structured research design process imposes certain constraints on the results and
may ignore more relevant and interesting findings. Also, capturing complex phenomena in
a single measure is at best misleading, for example, is it possible to assign a numerical

28

value to a person’s intelligence? (Collis and Hussey, 2003) Therefore interpretivism was
developed due to the criticisms of positivism.

Strengths of Positivist Research

o  Positivist research is developed to achieve defined theoretical objectives.

o  Positivist research is economical both in terms of time and for sampling large

numbers.

o  Positivist research is easily analysed and clearly demonstrates existing or

emerging patterns and trends.

o  Positivist research gives the researcher control in measurement using validity

and reliability testing (Easterby-Smith et al 2002).

Weaknesses of Positivist Research

o  Positive research is rigid and inflexible and once data gathering has commenced
is difficult to change.
Strengths of Positivist Research

  Positivist research is developed to achieve defined theoretical objectives.

  Positivist research is economical both in terms of time and for sampling large

numbers.

  Positivist research is easily analysed and clearly demonstrates existing or

emerging patterns and trends.

  Positivist research gives the researcher control in measurement using validity

and reliability testing (Easterby-Smith et al 2002).

Weaknesses of Positivist Research

  Positive research is rigid and inflexible and once data gathering has commenced is
difficult to change.
  Positive research is vague, in terms of understanding the social processes behind the
data.
  Positive research while useful in assisting decision making is not holistic enough to
interpret social actions and therefore is limiting when used in policy making (Easterby-
Smith et al 2002).

3.2.3.2 Interpretivism

An interpretivist approach to research is based on the idea that the researcher and reality
exist in the same world. As a result, knowledge of the world comes from life experience
and the object of research has to be interpreted in terms of the life experience of the
researcher.

Interpretivism assumes that the social world is continually changing and that the
researcher is part of this. In contrast to the positivist paradigm, rather than studying facts
and developing a series of law like generalisations, interpretivism is

29

concerned with understanding and appreciating the different constructions and meanings that
people place on their experience (Saunders et al. 2007). Each situation is seen as unique and its
meaning is a function of the circumstances and the individuals involved. According to Collis and
Hussey (2003) what is researched cannot be affected by the process of the research.
Collis and Hussey (2003) summarise the main features of the two paradigms in the table
presented below.

Table 1: Features of the two main research paradigms

Positivistic Paradigm Interpretivist paradigm

Tends to produce quantitative data Tends to produce qualitative data
Uses large samples Uses small samples
Concerned with hypothesis testing Concerned with generating theories
Data is highly specific and precise Data is rich and subjective
Location is artificial Location is natural
Reliability is high Reliability is low
Validity is low Validity is high
Generalises from sample to population Generalises from one setting to another

Smith (2003) and Saunders et al. (2007) support the view that both positivist and interpretivist
approaches are valid, one being neither better nor worse than the other, and that much research is
actually founded on a combination of the two philosophies.

Advantages of Interpretivism

  Explores subjective meanings behind peoples actions

  Highly flexible giving many different answers
  Accounts for the changing business environment

30

Disadvantages of Interpretivism

  Data analysis and collection can be time consuming and difficult

  No exact pattern or law like generalisations
  Not perceived to be as credible as the positivist approach
  Observer bias can be evident

(Adapted from Saunders et al., 2007)

3.2.3.3 Research philosophy adopted

The choice of research philosophy depends on the research aims and objectives.
In this case the researcher used both philosophies. Interpretivism was used at the start of
the research process, carrying out semi-structured interviews with third level students.
The reason why interpretivism was used is because it is flexible and can result in many
different answers which is necessary when conducting interviews. One of the main
advantages of doing the interviews was that it allowed the researcher to obtain a better
understanding of the interviewee’s thoughts and opinions, thus enabling the researcher to
design a more effective questionnaire. One of the major drawbacks of this philosophy is
that findings are open to observer bias but the researcher overcame this by tape recording
the interviews.
1. The researcher also used positivism via the use of questionnaires which were sent to
third level business students in Institutes of technology and Universities in the North
West. The use of questionnaires can be more advantageous as they allow the researcher
to interpret findings in a more quantifiable manner, because of the structured nature- the
use of yes/no answers and the Likert rating scale. This approach allowed the researcher
to become a more objective analyst. The use of questionnaires was less time consuming
than conducting interviews which meant that larger numbers could be surveyed.
Questionnaires are also easier to analyse and they clearly demonstrate existing or
emerging patterns and trends. The main limitation of questionnaires is that the highly
structured research design may

31

ignore more relevant and interesting findings. The researcher attempted to overcome this
by allowing the individuals who completed the questionnaires to include any additional
comments at the end of the questionnaire.

3.2.4 Research approach

This decision had to be made correctly in order to progress with the correct research
design process. An understanding of the research theory was necessary to do so. There
are two possible approaches to research, namely inductive and deductive research.

3.2.4.1 Inductive/ Deductive

Inductive research is when theory is developed from the observation of empirical reality,
thus general influences are induced from particular instances. Deductive research is
when a conceptual and theoretical structure is developed and then tested by theoretical
observation; therefore particular instances are deduced from general inferences.

3.2.4.2 Research approach adopted

The inductive approach was more suitable for this research as the researcher was trying
to determine the attitudes of business students towards the accounting profession, and
the factors that influence them to pursue accounting. This involved the researcher
developing the theory from data collected via questionnaires and interviews. With the
inductive approach there is a realisation that the researcher is part of the research process
so that the researcher should gain an understanding of the meaning that humans attach to
events; this may not have been possible had the deductive approach been undertaken.

32

3.2.5 Research focus

Saunders et al. (2007) states that; “the classification most often used is the threefold one
of exploratory, descriptive, and explanatory research”. The researcher will explain each
one of these research methods briefly.
3.2.5.1 Exploratory

Robson (2002) states that exploratory are a valuable means of finding out ‘what is happening; to
seek new insights; to ask questions and to assess phenomena in a new light’. Through exploration
the researcher develops the concepts more clearly, establishes priorities, and improves the final
research design (Cooper and Emroy 2000). Exploratory research is particularly useful if you wish
to clarify your understanding of a problem. It may be that time is well spent on exploratory
research, as it may show that the research is not worth pursuing (Saunders et al., 2003).

There are three principal ways of conducting exploratory research. They are:

1. A search of the literature

2. Talking to experts in the subject
3. Conducting focus group interviews. (Saunders et al., 2007)

3.2.5.2 Explanatory

Saunders et al. (2007) states that ‘studies that establish casual relationships between variables may
be termed explanatory studies’. They state that the emphasis here is on studying a situation or
problems in order to explain the relationships between variables.

33

3.2.5.3 Descriptive

Cooper and Emroy (1995) state that; “the objective of a descriptive study is to learn; the who,
what, when, where and how of a topic”. The study may be simple or complex and can be done in
many settings. Robson (2002) as cited by Saunders et al., (2007) argue that the object of
descriptive research is to ‘portray an accurate profile of person’s events or situations’. They state
that it can be used as an extension to or forerunner to exploratory research. Sekaran (2000)
identified the following benefits from conducting descriptive research:

1. They assist in decision making

2. Provide a basis for further research
3. Develop an understanding of the group.

3.2.5.4 Research focus adopted

The research focus undertaken can be classified as both descriptive and exploratory. The
descriptive element of the research involved an analysis of the relevant literature and similar
studies that were conducted in other countries. However, the exploratory part comprises the
opinions and attitudes of the students in the North West towards the accounting profession. This
part of the research was conducted via semi-structured interviews and questionnaires. The great
advantage of both exploratory and descriptive research is that they are both flexible and adaptable
to change.

3.3 Data collection methods

There are many collection methods available to the researcher. These methods include case
studies, focus groups, interviews, and surveys. The type of method used for data collection
depends mainly on the objectives of the research. This section focused on the methodologies of
interviews and questionnaires as the researcher felt that these were the main methods which
satisfied the objectives.

34

Case studies were ruled out as they can be time consuming and observation was also deemed
unsuitable for the research.

3.3.1 Interviews

An interview can be described as a purposeful discussion between two people. (Kahn and Cannell,
1957). There are three main types of interviews: unstructured, semi-structured and structured.

At the initial stages of the research the researcher felt it would be necessary to carry out semi-
structured face to face interviews with business studies students in order to determine their
opinions and attitudes regarding the accounting profession, accounting education, and the factors
3.3.1 Interviews

An interview can be described as a purposeful discussion between two people. (Kahn and
Cannell, 1957). There are three main types of interviews: unstructured, semi-structured and
structured.

At the initial stages of the research the researcher felt it would be necessary to carry out semi-
structured face to face interviews with business studies students in order to determine their
opinions and attitudes regarding the accounting profession, accounting education, and the factors
that influence them to pursue accounting as a career. The reason semi-structured interviews were
chosen was the researcher believed they would allow for more flexibility and would allow the
researcher to ask or omit questions on the spot depending on the interviewee’s answers and
reactions. The researcher felt that unstructured interviews were unsuitable as they are time
consuming and are also difficult to interpret findings as there is no standard on which to base the
findings. Structured interviews were also deemed unsuitable as there is no room for flexibility in
relation to questions asked and there is little room for interaction between interviewer and
interviewee.

The students interviewed where chosen at random and the interviews were conducted face to face
in early June 2008. Each interview was approximately thirty minutes in duration. The interviews
were tape recorded by kind permission of the interviewees. Tape recording the interviews allowed
the interviewer to concentrate on questioning and listening to the answers given. It also limited
the possibility of interviewer bias as it provided an accurate record of the interview which could
be re-listened to. The information that was gathered in the interviews was then used by the
researcher to design a more effective questionnaire.

35

3.3.2 Questionnaires

Collis and Hussey (2003) describe a questionnaire as being a list of carefully structured questions
with a view to eliciting reliable responses from the chosen sample. Questionnaires are a widely
used research tool, however, Easter-Smith et al. (2002) state that they may seem simple to use but
their design is by no means simple. Collis and Hussey (2003) outline a number of issues to be
considered when using questionnaires, these include: sample size, type of questions, wording of
questions, cover letter, method of distribution and tests for validity and reliability.

An online questionnaire was used to investigate the factors that influenced major selection among
business students in the north-west. The questionnaires were sent directly to business/accounting
degree students at Letterkenny Institute of Technology, Institute of Technology Sligo and Magee
University. The main reason that online questionnaires were used was their speed of response,
low cost and ease of processing collected data. It also meant that a larger number of students
could be surveyed.

The researcher decided to develop and design his own questions as the research area had not been
investigated in Ireland before. All the questions were designed on the basis of literature review
findings and on information gathered from interviews conducted with accounting students at
Letterkenny Institute of Technology.

A copy of the cover letter which accompanied the questionnaire can be found in Appendix I and a
copy of the questionnaire can be found in Appendix II. The aim of the covering letter was to
explain the purpose of the research and state who the researcher was.

Giving the time and financial constraints of the research, the researcher thought that
questionnaires were the best option to give the most reliable and general information although
they do have their limitations, namely possible low response

36

rates. However, the researcher tried to overcome this limitation by sending out reminder emails
encouraging the population to respond.
Giving the time and financial constraints of the research, the researcher thought that
questionnaires were the best option to give the most reliable and general information although
they do have their limitations, namely possible low response

36

rates. However, the researcher tried to overcome this limitation by sending out reminder emails
encouraging the population to respond.

3.4 Data analysis

The data was analysed using tables and graphs. The questionnaire used yes/no questions and
rating scale questions otherwise known as likert-style rating questions. This type of question
asks the respondents to what extent they agree or disagree with a statement or to what extent
they feel a specific factor has influenced them in their choice of career. The likert style
questions were useful to find out the attitudes and opinions of the respondents where yes/no
questions were not appropriate.

3.5 Ethical considerations

The researcher conducted all primary research with professional integrity and strict
confidentiality. With regard to interviews, verbal permission to record was obtained before
interviews. With regard to online questionnaire, a confidentiality statement was placed on each
questionnaire giving the respondents full anonymity.

3.6 Conclusion

The research undertaken was to investigate the factors that influence business/accounting
students to pursue accounting. It involved both the positivism and interpretivism philosophies.
The research was descriptive and also exploratory in nature. The research process involved the
circulation of online questionnaires and the undertaking of semi-structured interviews, the
findings of which are discussed in chapter four.
JOURNALS OF ACCOUNTING LITERATURE

The objective of the Journal is to publish papers that make a

fundamental and substantial contribution to the understanding of
accounting phenomena. To this end, the Journal intends to
publish papers that (1) synthesize an area of research in a concise
and rigorous manner to assist academics and others...

The effect of computer-assisted instruction versus

traditional instruction on achievement in principles of
Accounting I at the junior/community college level.
Linden, Linda Kay.
URI: http://hdl.handle.net/123456789/2248
Date: 2012-12-07
Abstract:
The purpose of this study was to determine if computer-assisted instruction
was more effective than traditional instruction in the teaching of accounting
principles classes at the junior/community college level. Sixty-three (l~=63)
junior/ community college students enrolled in the Principles of Accounting I
course at Colby Community College at Colby, Kansas, during the fall
semester of the 1979-80 academic year acted as subjects in the study.
Pretest-posttest achievement gain scores were used to test the null
hypothesis concerning student achievement and summary Using a two-way
ANOVA, the results indicated that the two groups, the computer-assioted
group (experimental) and the traditional group (control), were not significantly
different in the existing variables at the time of the study. A two-tailed 1-score
was used to test the null hypothesis concerning the two student groups'
posttest scores. The results of testing this null hypothesis was that neither
the experimental group nor the control group had significantly greater gains
in achievement on the posttest. Conclusions There is no significant
difference between the posttest scores of accounting students using the
computer-assisted instruction method and the posttest scores of accounting
students using the traditional instruction method. Recommendations: 1. A
similar experiment should be conducted using a larger number of subjects to
determine if the same results would be obtained. The results of such a study
would increase the generalizability of the findings. 2. Additional research
should be conducted matching students by ability levels. The difference in
variances would be more accurate as they would not be attributable to
something other than difference in ability.
The effect of computer-assisted instruction versus
traditional instruction on achievement in principles of
Accounting I at the junior/community college level.
Linden, Linda Kay.
URI: http://hdl.handle.net/123456789/2248
Date: 2012-12-07
Abstract:
The purpose of this study was to determine if computer-assisted instruction
was more effective than traditional instruction in the teaching of accounting
principles classes at the junior/community college level. Sixty-three (l~=63)
junior/ community college students enrolled in the Principles of Accounting I
course at Colby Community College at Colby, Kansas, during the fall
semester of the 1979-80 academic year acted as subjects in the study.
Pretest-posttest achievement gain scores were used to test the null
hypothesis concerning student achievement and summary Using a two-way
ANOVA, the results indicated that the two groups, the computer-assioted
group (experimental) and the traditional group (control), were not
significantly different in the existing variables at the time of the study. A
two-tailed 1-score was used to test the null hypothesis concerning the two
student groups' posttest scores. The results of testing this null hypothesis
was that neither the experimental group nor the control group had
significantly greater gains in achievement on the posttest. Conclusions
There is no significant difference between the posttest scores of accounting
students using the computer-assisted instruction method and the posttest
scores of accounting students using the traditional instruction method.
Recommendations: 1. A similar experiment should be conducted using a
larger number of subjects to determine if the same results would be
obtained. The results of such a study would increase the generalizability of
the findings. 2. Additional research should be conducted matching students
by ability levels. The difference in variances would be more accurate as
they would not be attributable to something other than difference in ability.
Journal entries are the first step in the accounting cycle and are used
to record all business transactions and events in the accounting
system. As business events occur throughout the accounting period,
journal entries are recorded in the general journal to show how the
event changed in the accounting equation. For example, when the
company spends cash to purchase a new vehicle, the cash account
is decreased or credited and the vehicle account is increased or
debited.

dentify Transactions
There are generally three steps to making a journal entry. First, the
business transaction has to be identified. Obviously, if you don't know
a transaction occurred, you can't record one. Using our vehicle
example above, you must identify what transaction took place. In this
case, the company purchased a vehicle. This means a new asset
must be added to the accounting equation.
Analyze Transactions
After an event is identified to have an economic impact on the
accounting equation, the business event must be analyzed to see
how the transaction changed the accounting equation. When the
company purchased the vehicle, it spent cash and received a vehicle.
Both of these accounts are asset accounts, so the overall accounting
equation didn't change. Total assets increased and decreased by the
same amount, but an economic transaction still took place because
the cash was essentially transferred into a vehicle.
Journalizing Transactions
After the business event is identified and analyzed, it can be
recorded. Journal entries use debits and credits to record the
changes of the accounting equation in the general journal. Traditional
journal entry format dictates that debited accounts are listed before
credited accounts. Each journal entry is also accompanied by the
transaction date, title, and description of the event. Here is an
example of how the vehicle purchase would be recorded.
Since there are so many different types of business transactions,
accountants usually categorize them and record them in separate
journal to help keep track of business events. For instance, cash was
used to purchase this vehicle, so this transaction would most likely be
recorded in the cash disbursements journal. There are numerous
other journals like the sales journal, purchases journal, and accounts
receivable journal.
f you are an accounting student, you do not need to be told just how
difficult accounting can be. Accountants analyze business
transactions and record them in journal entries using debit-credit
rules as a guide. Usually, an accountant will use specialized
journals for numerous journal entries of the same type – like cash
journals, sales journals, and purchases journals. Large businesses
usually use specialized journals. Smaller businesses tend to only
use a general journal that includes all transactions. Recording
journal entries is only the first step in the accounting cycle.
If you are interested in learning accounting, try an
introduction to financial accounting. Here are journal entry
examples to help you better understand journal entries.

First Example
The company started business on June 6, 2013. The business was
started with $300,000. The transactions they engaged in during
their first month of business are below:
Date Transaction
June 8 An amount of $50,000 was paid for six months of rent.
June 9 Equipment costing $100,000 was purchased using $40,000
cash. The remaining amount of $60,000 is a one year note w
an interest rate of 3.4%
June 10 Office supplies were purchased totaling $25,000 on account.
June 16 Received $39,400 in cash for services rendered to customers
June 16 Paid the account for office supplies purchased June 10.
June 20 $63,900 worth of services were given to customers. Received
cash amount of $43,700. Customers promised to pay
remaining amount of $20,200.
June 21 Paid employees’ wages for June 8-June 21. Wages totaled
$23,500.
June 21 Received $20,200 in cash for services rendered to customers
on June 20.
June 22 Received $6,300 in cash as advanced payment from custome
June 27 Office supplies were purchased totaling $3,500 on account.
June 28 Electricity bill received totaling $1,850.
June 28 Phone bill received totaling $2,650.
June 28 Miscellaneous expenses totaled $4,320.
These events would then be recorded into the accounting journal.
The table below records the journal entries for the events above.
Date Account
The journal is then posted to the ledger accountsDebit
at the end of Credit
June 6
the period. LargerCash
businesses separate their ledgers300,000
into different
June
books,8 one beingPrepaid rent ledger and the other50,000
the general being a
Cash
subsidiary ledger. The general ledger will include the main 50,000
June 9 and theEquipment
accounts 100,000owner’s
following categories: assets, liabilities,
Cash gains, and losses. The subsidiary ledger40,000
equity, revenue, expense,
Notes Payable
includes detailed records of some accounts in the general ledger, 60,000
June 10 main subsidiary
the three Office Supplies
ledgers being accounts25,000
receivable,
Accounts
inventory, and accounts Payable
payable. When recording the 25,000
June 16
transactions, it isCash
important to know how to record 39,400
the debits
and credits. When Service
workingRevenue
with assets and expenses, an increase39,400
June 16
is recorded Accounts
in debit, and aPayable
decrease is recorded in25,000
credit. When
Cash equities, and revenues, a decrease is
working with liabilities, 25,000
June 20 in debit,
recorded Cash
and an increase is recorded in 43,700
credit.
Accounts Receivable 20,200
Service Revenue 63,900
June 21 Wages Expense 23,500
Cash 23,500
June 21 Cash 20,200
Accounts Receivable 20,200
June 22 Cash 6,300
Unearned Revenue 6,300
June 27 Office Supplies 3,500
Accounts Payable 3,500
June 28 Electricity Expense 1,850
Utilities Payable 1,850
June 28 Telephone Expense 2,650
Utilities Payable 2,650
June 28 Miscellaneous Expense 4,320
Cash 4,320