This study addresses whether the traditional predictors of success in graduate
accounting classes apply to Financial Statement Analysis (FSA). FSA is being
offered at an increasing number of schools, yet its content and student
population differ from that of traditional upper-level graduate accounting courses.
Previous studies have shown that GMAT scores, and in some cases, previous
accounting work experience are associated with success in the introductory
graduate accounting class. This study evaluates the relationship between these
factors, as well as other previously untested variables, and performance in FSA.
The results suggest that different factors are associated with success in FSA.
The grade in the required graduate introductory accounting class is the only
variable significantly associated with performance in FSA. These findings may
have implications for introducing other broadening courses in the graduate
accounting curriculum, as well as policies that limit access to upper-level
accounting classes on the basis of introductory accounting grades.