چکیده (انگلیسی):

The concepts of both accrual accounting and cash basis accounting need to be thoroughly
understood by accounting graduates as they enter the workplace. In making decisions, both
managers and investors often may need to make adjustments from one basis to the other. But do
students really understand these concepts? This study uses an experimental approach to determine
if students in both the U.S. and Mexico understand the association between accrual and cash flow
numbers in the area of depreciation. The results reveal that the majority of student participants in
both countries do not understand the relationship between depreciation and cash flows. This
suggests that the way depreciation is taught in intermediate accounting may need to be approached
differently in order for students to understand the nature of depreciation and its effect on earnings
and cash flows.