CPA Examination Preparation and Intermediate Accounting Textbooks -- An Update

Abstract

This paper is a follow up study to a survey conducted in 1985-1986. The original survey was designed to determine if the intermediate accounting instructors opinion regarding the elimination or combination of the first three or four chapters of intermediate accounting textbook (review chapters) have been changed because of the large volume of new FASB pronouncements and standard that have been added to the intermediate textbook. About 75 percent of the Financial Accounting and Reporting topics listed in the AICPA’s Content and Skill Specifications for the Outlines (updated May, 2009-2010) for the CPA examination are covered in intermediate accounting textbooks. Intermediate accounting textbooks could possibly be supplemented to include even more topics of the CPA examination. The textbooks, however, are already very lengthy. This follow up paper reports the results of a survey of intermediate accounting instructors to assess their reaction to eliminating one or more of the first four chapters of current textbooks; chapters that cover material introduced in prerequisite courses. Almost all (30 of 31) responding instructors were against cutting any topics in these chapters, and almost 71 percent would neither eliminate nor consolidate any of these chapters. In about 87 percent of the schools, intermediate accounting is offered as a junior level course. Very little or no significant difference was found in the treatment of first four chapters, or in total number of chapters covered in intermediate accounting, between schools offering the course as a junior level versus those permitting sophomore enrollments.