The teaching methodology used in accounting courses throughout the nation is found to be diverse and influenced by the professor who is conducting the class as well as the population being addressed. Yet, the goal of a professor in any environment is to be effective in carrying out the appropriate steps for the learning process to take place in a manner that indicates a high degree of success. There are several methods that can be utilized to accomplish this type of success, such as group activities, service learning projects, mentor programs, case analyses, real world simulations, internships, just to name a few.

All of these techniques have been highly beneficial to the students in their comprehension of the accounting material. Thus, in addition to the traditional lecture, the accounting topics under discussion should be supplemented by one of these activities to assist the students in becoming more knowledgeable and prepared for the business world. The technique selected for discussion in the next paragraphs is a real world simulation, in which the students experience the use of a software package similar to software used in actual practice.

The theory presented by the professor in the first accounting classes covers the basic accounting concepts and principles that are considered an integral part of the accounting process. The students are taught how to journalize, post, and prepare the financial statements. In other words, the seven steps of the accounting cycle, as explained in the Financial and Managerial Accounting textbook by Warren, Reeve, and Fess, are illustrated and emphasized to the students. Yet, the actual application occurs when these students start utilizing the P.A.S.S. (General Ledger) software.

The assignments found after each chapter of the textbook, which indicate the use of the general ledger software, make the students aware of how transactions are processed in a real accounting environment. The proper way to use these computerized problems is after the students have done them manually, especially from chapter one thorough four when they are learning the accounting cycle. As a result of this approach, the students will be more aware of the significance of the software in processing the transactions but at the same time, they will understand the logic of the process because they had the experience of doing the exercises by hand. After the first four chapters, then the exercises can be assigned entirely at the computer.

Another alternative, or additional task to the chapter problems is the use of a practice set, such as Nina Decorating House, to demonstrate how the transactions are processed. This particular practice set follows the chapter topics of the textbook and uses the same general ledger software described previously, but it presents an interrelated setting of monthly transactions occurring at a specific company. A recommended approach is to first let the students work some of the chapter problems in chapters one through four and then, assign the practice set for them to see a more complete picture of what takes place in a company on a monthly basis.

In summary, the use of the P.A.S.S. software is helpful in demonstrating to the students how a computerized system operates in the actual world. Once they have learned how to use it, then it will be easier for them to adapt and learn other types of commercial software packages found in real businesses.