Solution of application of funds statement problems seems to be accomplished by many students more as a result of their memorization of rules and processes than because they have a basic understanding of what the statement seeks to accomplish. The student who understands the essential nature of the funds statement is not baffled easily when confronted by a unique situation, which his previous homework or classroom demonstration problems did not parallel. In an effort to achieve the desired sound grounding in fundamentals of funds statements the writer has reduced his first class discussions to a very elementary level. The result has been more satisfactory than previous efforts to teach the topic by conventional and more erudite approaches. The extreme simplification process is presented primarily on the blackboard. The writer has found that after use of this technique and a few transitional remarks the average student better understands the usual application of funds worksheet and works problems from reason and not by rote.

The article presents information about teaching methods in accounting systems. Any student with normal intelligence and aptitude can comprehend the general topics of elementary and advanced accounting and their associated relationships. However, when the student advances to specialized accounting courses, such as cost accounting, accounting system design and installation and auditing, he often loses perspective and fails to grasp the associated relationships present in the specialized courses. Often a student is half way through a specialized course before these relationships comprising the complete course are unfurled in fairly clear fashion. If the student is confused on this matter in the classroom, then how much more confused is he going to be when he takes an accounting position in a going concern? While it is true that the student first of all must know the why of it in all accounting courses from an academic viewpoint, it is also equally true that he must know the how to do it when he obtains a position after graduation. This latter point is particularly true if the student is to make rapid advancement in his chosen work.