Financial Accounting Simulation

In the simulation, participants will:

• Analyze business transactions and determine proper journal entries.

• Make period-end adjusting entries for accruals, deferrals, and estimates.

• Manage inventory costing and calculate cost of goods sold.

• Account for long-term assets, including depreciation and disposal.

• Prepare a complete set of financial statements from the adjusted trial balance.

• Calculate key financial ratios (liquidity, profitability, solvency) to assess company health.

• Identify accounting errors or irregularities through reconciliation and analysis.

• Present financial results and explain performance drivers to a simulated board or investors.

• Execute the complete accounting cycle for a going concern.

• Apply GAAP/IFRS principles to record complex business transactions accurately.

• Demonstrate the cause-and-effect relationship between operational decisions and financial statements.

• Prepare and interpret the three major financial statements.

• Use ratio analysis to evaluate a company's financial performance and position.

• Communicate financial information clearly to support business decision-making.

• Develop professional judgment in applying accounting standards.

• Build confidence in handling real-world accounting scenarios under time constraints.

1. Receive the Business Scenario Participants are introduced to their company, its industry, and the strategic and operational events for the period.

** 2. Record Transactions** They analyze invoices, contracts, and bank statements to record journal entries in a simulated general ledger.

3. Perform Period-End Tasks Participants make necessary adjusting entries, update subsidiary ledgers, and run an adjusted trial balance.

4. Prepare and Analyze Teams prepare the income statement, balance sheet, and statement of cash flows. They then calculate ratios to analyze results.

5. Report and Strategize Participants compile their findings into a management report or deliver a brief presentation, explaining performance and suggesting future actions.

6. Review and Iterate Automated feedback scores accuracy, compliance, and analytical depth. Teams see their financial outcomes and rankings before proceeding to the next challenging period.

• Who is this Financial Accounting Simulation designed for? It's ideal for undergraduate and graduate students in accounting, finance, or business administration, as well as corporate trainees in finance departments.

• Do participants need prior accounting experience? A basic understanding of fundamental accounting concepts (like debits/credits) is helpful, but the simulation includes instructional guides and videos to support all learners.

• How long does the simulation run? A standard simulation runs 4-6 hours but is modular and can be adapted into shorter sessions or extended multi-period projects.

• Is it individual or team-based? It supports both formats. Team-based play encourages collaboration and mirrors real-world accounting department dynamics.

• Does it cover both GAAP and IFRS? Yes, the simulation framework allows instructors to set the reporting standard for the scenario, and the rules engine validates entries accordingly.

• Are the financial statements generated automatically? Yes, once journal entries are validated, the system auto-generates the financial statements, allowing participants to focus on analysis and interpretation rather than manual formatting.

• Can instructors customize the business scenarios? Absolutely. Industry type, transaction complexity, and specific accounting challenges (e.g., revenue recognition methods) can be tailored.

• What roles does this simulation prepare participants for? It builds foundational skills for roles in public accounting, corporate accounting, financial analysis, auditing, and controllership.

• Correct application of accounting rules and preparation of statements.

• Quality of financial ratio analysis and business insight.

• How well financial data is used to inform operational choices.

• Clarity and persuasiveness in reporting financial results.

• Teamwork and time management.