The Need for Different Methods
In 1993, I became increasingly aware that many accounting educators, practitioners and students agreed that accounting education was excessively procedure and knowledge-oriented. New instructional approaches were called upon to actively engage students, not only to learn accounting, but to provide the know-how to transfer their learning to the real world's complex financial decisions.

I also was searching for instructional methods that would improve my own teaching effectiveness. Not much learning takes place in the traditional lecture method (so frequently used in accounting courses). Discussion-based classes do better, but the best learning takes place when students must make their own decisions after analyzing and evaluating unique situations.

It became apparent that using a simulation game could be one part of a solution. A simulation game imitates some part of reality, yet is a contest. Simulation games offer the following advantages:

• Motivate many students to participate to a greater degree than they would in a lecture or discussion class.

• Increase the ability to recall factual knowledge and improve problem-solving skills.

• Offer students participating in simulation games experience greater attitudinal change than those engaging in more traditional learning environments.

• Offer the potential for students to attribute greater value to accounting information in the decision-making process.

• Give students, through the "wheeling and dealing" simulations, intensive practice in verbal and written communication.

• Require flexibility in thinking as students adapt to a dynamic environment.

• Benefit students with varying skills and experience because participants can play at their own level.

Playing the Game
I incorporated Monopoly basics to create a simulation game called "Real Money." In Real Money, students are assigned to games so that there are four tokens per game. Students play 13 turns (one year or accounting period) of Monopoly, writing down everything that happens to them during the game.

At the conclusion of the first year, the students each prepare a set of financial statements for their token, with adjusting entries for income tax (a percentage of net income), interest, depreciation on houses and hotels, and accrued salary for progress around the board. The financial statements are submitted for grading, and I assume the role of public auditor.

After grading the first year financial statements, I transcribe them into a spreadsheet and upload it to the course Web page, http://www.profalbrecht.com/classes/acct321/realmoney/. Students then must view and analyze the four sets of financial statements for each game. Each student is allocated an imaginary $100 per game for investment. Essentially, students must wager on whom they think will eventually win each game.

In a typical game, about two-thirds of the properties have been acquired by the end of the first year, but there are no monopolies. The investment patterns show wide-spread diversification. If a token is perceived to have a slight advantage based on total property acquired, then an average investment or wager will be $30-35. Those tokens perceived to be behind will have averaged $15-20 of investment support.

After I collect each student's investments or bets, the class is instructed to play a second year of Monopoly and submit financial statements. After grading the financial statement for all tokens in each game, I publish them again on the course Web page.

Again, students receive $100 of investment per game. In a typical game, most of the properties have been acquired, and some monopolies have been created as a result of trades. Average investments or bets range from about $50 for tokens with the greatest perceived advantage in properties and houses, to $10 for tokens with the least future earnings capabilities.

The fourth and final year of Monopoly is played, and students submit financial statements for grading. A winner for each game is declared based on a highest retained earnings. The wagers for each year are tallied and winnings are presented to each student that invested on the winning token.

What They Learn
Students learn to evaluate income statements for the quality of reported earnings. They base their estimates of investment value on the chance of future success instead of documented past success. Also, if certain teams are slow to capitalize on early advantages, investors turn from them in later bidding rounds. The accounting portion contains all the advantages listed by Knechel. In addition, students get to repeat the end of period accounting cycle, and hopefully, correct any errors that may have occurred during their first attempt.

This simulation class can be used in financial accounting courses at many levels. It could effectively be used as a review in Intermediate Accounting or to supplement an introductory course. It can also be used in MBA classes. I generally do not force MBA students to prepare journal entries, allowing them the option of analyzing the effects of transactions through use of a detailed balance sheet equation. Financial statements are then prepared from this analysis.