Abstract This paper reports the results of an empirical assessment of the correlation of student first-quarter Intermediate Accounting performance with score on an entry examination and two measures of grade-point average, while allowing for instructor differences. Results indicate that an entry examination covering the basic accounting cycle is a significant predictor of student performance. Both measures of GPA are also significant, although Principles-of-Accounting GPA exhibits a stronger correlation than does overall Freshman-Sophomore GPA.
Hicks et al. (1984) studied this question.