Abstract Schroder et al. 1967 developed a model that states that human information processing is maximized at some optimal level of environmental complexity. Edmonds 1983 demonstrated the applicability of the Schroder et al. model to the environment in which introductory financial accounting is taught. He explained how the complexity of this environment could be controlled by altering the number of elements (i.e., assets, liabilities, owners' equity, revenues, expenses, and net income) used during the introduction of the accounting cycle. This study analyzed the impact of two levels of environmental complexity on Information processing by two groups of undergraduate accounting students. One level of complexity was established through the use of an explanatory model composed of two elements (dimensions); the other employed a six-dimensional model. To the extent that one model more closely approached the optimal level of environmental complexity, that model should have permitted greater understanding and learning, which should be reflected in better exam performance. The group that was taught using the two-dimensional model during the introduction of the accounting cycle performed significantly better on test questions covering the accounting cycle. However, significant differences were not found between the mean scores for tests covering material subsequent to the accounting cycle.
Edmonds et al. (Fri,) studied this question.