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ALGEBRA AS A TEACHING AID FOR CONSOLIDATED BALANCE SHEETS
Author(s) -
Francis J. R.
Publication year - 1979
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.1979.tb00206.x
Subject(s) - worksheet , consolidation (business) , computer science , algebra over a field , mathematics education , management science , mathematics , engineering , accounting , economics , pure mathematics
Consolidated financial statements are typically taught by the use of a consolidated worksheet. Adjustments in journal entry form are made on the worksheet to derive a consolidated result. Students often have difficulty with the worksheet adjustment methodology because it focuses more on the adjustment rules than on the underlying consolidation objective. An alternative methodology based on algebra overcomes the deficiencies inherent in the worksheet approach. Algebra is suggested to be a rigorous and concise tool for use in teaching consolidation objectives and in solving consolidation problems.