Which Math Skill Matters the Most in Accounting Learning?

Abstract

Accounting has been one of the most popular business majors in the United States and is a subject that requires substantial quantitative and analytical skills. At many universities and colleges, accounting courses typically require a certain level of mathematics preparation. However, it is still unclear which branches of mathematics contribute most to students' accounting learning. We collect data on students’ math ability and accounting performance to investigate the relation between three mathematics skills (arithmetic, algebra, and word problems) and accounting learning. Our results have implications on college curriculum design, showing that an emphasis should be on word problems for accounting students.