critical thinking examples in accounting

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How to develop critical thinking skills in finance & accounting

Stephen Moir

When it comes to finance and accounting roles, employers are increasingly looking for problem solvers, not a number-crunchers. Over recent years, we have seen an increasing demand for people who can analyse and interpret data and think critically.

What is critical thinking.

A critical thinker is a problem solver. They are able to evaluate complex situations, weigh-up different options and reach logical (and often quite creative) conclusions.

Critical thinkers are highly-valued by employers as they innovate and make improvements, without taking unnecessary risks. Chartered Accountants Australia and New Zealand recently identified that it was in the top 10 attributes that will help you get noticed in the job market.

Why are critical thinking skills important?

Once you have learnt how to develop critical thinking skills you will be better able to add value to data, interpret trends within the business, understand how people and performance intersect and take-on broader commercial outlook that benefits the business.

How to develop critical thinking skills

Critical thinking comes naturally to some people, but it is also a skill than can be practiced. Here are some tips for how to develop your own critical thinking skills :

Examine: Self-awareness is the foundation of critical thinking. It allows you to play to your strengths and address your weaknesses. Question how and why you do things the way you do.
Analyse: Look for opportunities to grow and improve. Consider alternative solutions to the problems you encounter in your work.
Explain: Clear communication is key. Get into the habit of talking through your reasoning and conclusions with colleagues.
Innovate: Develop an independent mind-set. Find ways to think outside the box and challenge the status quo. Make sure your decisions are well-thought out. A critical thinker is logical as well as creative.
Learn: Keep an open and well-oiled mind. Brush-up on your problem-solving skills by doing brain-teasers or trying to solve problems backwards. Keep up-to-date with professional learning opportunities . You may also need to unlearn past mindsets in order to grow and move forward.

How to apply critical thinking skills in your current role

Could you implement a new process or procedure that enhances performance or profitability? You might also consider volunteering for a new project or responsibility that gives you the opportunity to innovate and take on a new challenge. It’s a great way to broaden your skillset and gain exposure to other parts of the business.

Surround yourself with other critical thinkers in the organisation and work together towards achieving a problem-solving culture. Ask questions, and always look for opportunities for continual learning.

Changing roles to develop critical thinking skills

At Moir Group, we are passionate about finding the right cultural fit between people and the organisations they work with. If you are a critical thinker, it’s worth looking for a stimulating work environment that encourages innovation and non-conformist thinking when considering your next role.

How to demonstrate critical thinking skills at an interview

During an interview, use examples from your past experiences to demonstrate your problem-solving abilities. Show that you can be analytical, weigh-up pros and cons, consider other view points and be creative in your solutions. Clearly articulating your thought process is key.

Sometimes an interviewer will ask you to simplify the complex as a way of determining your clarity of thought. For example: “How would you explain the state of the economy to a kindergarten child?” In instances like these, the focus will be on how you explain your reasoning, rather than achieving a ‘right’ answer. Learn more here.

If you’re looking to take that next step in your career, we can help. Get in touch with us here .

2 Responses to “How to develop critical thinking skills in finance & accounting”

Hi Stephen,

The above is very useful and very valuable for employers. However my understanding of critical thinking is slightly different from above. I recently listened to a course in critical thinking by Professor Steven Novella of Yale School of Medicine. To keep it simple it is to do with assessing the veracity of views and statements made by oneself, others and media being constantly aware of the many biases, the flaws and fabrications of memory, half truths, unspoken truths, and even lies. So it becomes key to adopt an inquisitive mindset, to look for external evidence that supports argument and not just wishful or hopeful thinking.

Just wanting to add to the debate as this is a really important area.

Hi Richard,

We are pleased that found this article useful. Thanks for your sharing your thoughts about critical thinking.

Top soft skills for accounting professionals

Soft skills are key to career advancement. one cpa at the forefront of recruitment and professional development shares tips for boosting these critical skills..

Professional Development

Communication

Career Development

As professionals advance in an accounting or finance career, soft skills become increasingly important. In a world that is becoming more digital, computerized, and automated, soft skills can be the differentiator between two employees competing for the same promotion or position.

In fact, in a recent survey reported by the Society for Human Resource Management, 97% of employers stated soft skills were either as important or more important than hard skills. Whether a professional is looking for a new job or seeking a promotion, focusing on and developing soft skills can help employees be more well-rounded and employable professionals.

What I am seeing, for my own team and firmwide working with hiring companies, is the importance placed on various soft skills for accounting and finance professionals, which can help take the company's work to the next level.

For professionals looking to improve their work and their employability, the four soft skills listed below are most prominent.

Time management

Time management is an essential skill for any accounting professional because of not only how deadline-focused the profession is, but also because of the time management discipline required by the large-scale shift to remote work. It can be challenging to avoid procrastination, and it is easier to get off track when working virtually.

Because of accounting's cyclical nature, employees have ample opportunities to hone time management skills. Most significant projects and deliverables will happen at the same time of year, depending on the organization. Here are a few tips I have found to help develop time management skills and stay organized.

Start with leveraging calendars and tasks. Using the organization's digital tools can help move projects along and keep them organized. For example, if working within a team setting, use a shared spreadsheet with colleagues to track each person's responsibilities for month-end close or whatever project the team has prioritized. For sole practitioners, diligently using a calendar can help with keeping on task and meeting deadlines.

Another way to develop time management skills is by talking to managers and colleagues. Ask how they keep their tasks aligned. They might be planning their days in a way that can work with other projects and tasks. CPAs who demonstrate good time management have a leg up both for new employment opportunities and for promotions within their organization.

Critical thinking

Various hiring managers we work with often request that candidates have "strong critical-thinking skills," but what does that mean for the accounting and finance profession? Critical thinking — analyzing problems and finding the causes and solutions to those problems — is a major facet of the accounting profession.

Organizations are constantly facing new financial challenges. Most recently, COVID-19 created a range of challenges for accounting and finance teams to solve. Reallocating funds and cash management, managing payroll changes, reacting to new legal changes to internal reporting practices, and other changes required employees to think critically and creatively to meet organizational needs.

While COVID-19 was unexpected, there are other challenges accounting teams can plan for. What we are seeing most employers ask for is accounting and finance professionals who not only look at the problems of the past and find solutions, but who also can predict problems before they occur. From first glance to final analysis, accounting professionals should look at all the information they have and be able to communicate why something happened and what can be done in the future to plan or account for it.

When working to develop critical thinking skills, I've found it extremely important to first question how and why processes are done the way they are and ask how they can be done better. This "professional skepticism" and general curiosity can help ensure accuracy across all tasks. Professional skepticism will make it easier to ask the right questions and find the "why" instead of just trusting information at face value.

Leveraging other successful accounting professionals' advice can hone critical thinking skills and make any accounting professional a stronger asset to their organization. Webinars, conferences, and networking with other accounting professionals can give insight into what other organizations are doing and offer vendor recommendations, process improvements, and more.

Our recruiters regularly see communication as a top skill for accounting and finance talent. Nearly every function of an organization interacts with the accounting and finance teams. Therefore, professionals need to have exceptional communication skills, both written and verbal. Important projects need to be communicated in an easy-to-understand way to executives and colleagues (especially if they are unfamiliar with accounting or finance terminology) to ensure proper completion.

If accounting and finance professionals have poor communication skills, making clear points, sharing their reports and creating action items from the findings can be difficult.

When working to develop strong communication skills, reach out to a manager for feedback. Have them review emails, reports, and other communication before sending out or sharing.

Ask them if the communication gets the point across and if they believe the end user will understand the report or the solution being communicated. It's important to recognize who your audience is and the best way to present the information.

Avoid using too much jargon and ensure that anyone can understand the information, not just accounting professionals. Along with asking a manager for help, do a self-review of any communication. For written work, read it out loud to catch errors. Hearing versus reading something has a different impact. For oral communication, practice in advance so that the meeting's goal or call is adequately communicated.

Collaboration

Collaboration with teammates and other employees is paramount for accounting professionals. Since accounting and finance teams touch every area of the business, they are expected to work cross-functionally and collaborate well with other employees. Projects that involve other employees — like budgets, cash flow projections, or strategic planning — can be complicated and require a high degree of collaboration.

While entry-level accountants might not lead these projects with other company leaders, they will eventually be expected to meet with teams across the organization, so developing this skill now is crucial for continued growth. Even for sole practitioners who work relatively independently, collaboration is absolutely key while working with clients and any other stakeholders in various projects.

One way I've found helpful in practicing to become a stronger collaborator is spending time before a meeting writing down questions and thoughts to bring to the conversation. Make speaking up in meetings and calls a regular habit, and eventually, it'll become muscle memory. Preparing questions and engaging with the topic will encourage other team members to do the same and create more dialogue and collaboration in the discussions.

— Ryan Chabus , CPA, MBA, is the controller at LaSalle Network, a staffing, recruiting, and culture firm based in the US. To comment on this article or to suggest an idea for another article, contact Drew Adamek, a JofA senior editor, at [email protected] .

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Improving Critical Thinking Skills

November 01, 2021

By: Sonja Pippin , Ph.D., CPA ; Brett Rixom , Ph.D., CPA ; Jeffrey Wong , Ph.D., CPA

Whether working with financial statements, analyzing operational and nonfinancial information, implementing machine learning and AI processes, or carrying out many of their other varied responsibilities, accounting and finance professionals need to apply critical thinking skills to interpret the story behind the numbers.

Critical thinking is needed to evaluate complex situations and arrive at logical, sometimes creative, answers to questions. Informed judgments incorporating the ever-increasing amount of data available are essential for decision making and strategic planning.

Thus, creatively thinking about problems is a core competency for accounting and finance professionals—and one that can be enhanced through effective training. One such approach is through metacognition. Training that employs a combination of both creative problem solving (divergent thinking) and convergence on a single solution (convergent thinking) can lead financial professionals to create and choose the best interpretations for phenomena observed and how to best utilize the information going forward. Employees at any level in the organization, from newly hired staff to those in the executive ranks, can use metacognition to improve their critical assessment of results when analyzing data.

THINKING ABOUT THINKING

Metacognition refers to individuals’ ability to be aware, understand, and purposefully guide how to think about a problem (see “What Is Metacognition?”). It’s also been described as “thinking about thinking” or “knowing about knowing” and can lead to a more careful and focused analysis of information. Metacognition can be thought about broadly as a way to improve critical thinking and problem solving.

In their article “Training Auditors to Perform Analytical Procedures Using Metacognitive Skills,” R. David Plumlee, Brett Rixom, and Andrew Rosman evaluated how different types of thinking can be applied to a variety of problems, such as the results of analytical procedures, and how those types of thinking can help auditors arrive at the correct explanation for unexpected results that were found ( The Accounting Review , January 2015). The training methods they describe in their study, based on the psychological research examining metacognition, focus on applying divergent and convergent thinking.

While they employed settings most commonly encountered by staff in an audit firm, their approach didn’t focus on methods used solely by public accountants. Therefore, the results can be generalized to professionals who work with all types of financial and nonfinancial data. It’s particularly helpful for those conducting data analysis.

Their approach involved a sequential process of divergent thinking followed by convergent thinking. Divergent thinking refers to creating multiple reasons about what could be causing the surprising or unusual patterns encountered when analyzing data before a definitive rationale is used to inform what actions to take or strategy to use. Here’s an example of divergent thinking:

The customer satisfaction metric employed by RNO Company has increased steadily for the quarter, yet its sales numbers and revenue have declined steadily for the same period. Jill, a senior accountant, conducted ratio and trend analyses and found some of the results to be unusual. To apply divergent thinking, Jill would think of multiple potential reasons for this surprising result before removing any reason from consideration.

Convergent thinking is the process of finding the best explanation for the surprising results so that potential actions can be explored accordingly. The process consists of narrowing down the different reasons by ensuring the only reasons that are kept for consideration are ones that explain all of the surprising patterns seen in the results without explaining more than what is needed. In this way, actions can be taken to address the heart of any problems found instead of just the symptoms. On the other hand, if the surprising result is beneficial to an organization, it can make it easier to take the correct actions to replicate the benefit in other aspects of the business. Here’s an example of convergent thinking:

Washoe, Inc.’s customer satisfaction metric has increased steadily for the quarter, yet sales numbers and revenue have steadily declined for the same period. Roberto found this result to be surprising. After employing divergent thinking to identify 10 potential reasons for this result, such as “the reason that customers seem more satisfied is that the price of goods has been reduced, which also explains the reduction in sales revenue.” To apply convergent thinking, Roberto reviewed each reason that best fit. If the reason doesn’t explain the unusual results satisfactorily, then it will either be modified or discarded. For example, the reduced price of goods doesn’t explain all of the results—specifically, the decrease in units sold—so it needs to either be eliminated as a possible explanation or modified until it does explain all the results.

Exploring strategic or corrective actions based on reasons that completely explain the unusual results increases the chance of correctly addressing the actual issue behind the surprising result. Also, by making sure that the reason doesn’t contain extraneous details, unneeded actions can be avoided.

It’s important to note that a sequential process is required for these types of thinking to be most effective. When encountering a surprising or unexpected result during data analysis, accounting professionals must first focus strictly on divergent thinking—thinking about potential reasons—before using convergent thinking to choose a reason that best explains the surprising result. If convergent thinking is used before divergent thinking is completed, it can lead to reasons being picked simply because they came to mind right away.

LEARNING THE PROCESS

Improving divergent and convergent thinking can benefit employees at any level of an organization. Newer professionals who don’t have as much technical knowledge and experience to draw upon may be more likely to focus on the first explanation that comes to mind (“premature convergent thinking”) without fully considering all of the potential reasons for the surprising results. Experienced individuals such as CFOs and controllers have more technical knowledge and practical experience to rely on, but it’s possible these seasoned employees fall into habits and follow past patterns of thought without fully exploring potential causes for surprising results.

Instructing all accounting professionals on how to think about surprising results can help them have a more complete understanding of the issues at hand that will help guide actions taken in the future. It can lead to a more creative approach when analyzing information and ultimately to better problem solving.

When teaching employees to use divergent and convergent thinking, the goal is to get them to focus on what should be done once they identify information that suggests a surprising result has occurred. The first step is to learn how to properly use divergent thinking to create a set of plausible explanations more likely to contain the actual reason for the surprising results. There’s a three-step method that individuals can follow (see Table 1):

Ask a broad question that reflects the goal you have: For instance, what is it about the current information that suggests a potential surprising event? Or what led to this event that can help predict future occurrences?
Answer that question with a complete sentence: Be sure the answer includes a description of the information that suggests a potential surprising event.
Turn the broad question into a creative challenge: Identify the plausible reasons that could have led to the indications of a surprising event.

Once employees have a good grasp of how to use divergent thinking, the next step is to instruct them in the proper use of convergent thinking, which involves choosing the best possible reason from the ones identified during the divergent thinking process. Potential reasons need to be narrowed down by removing or modifying those that either don’t fully explain the surprising results or that overexplain the results.

Two simple questions can help individuals screen each of the possible explanations generated in the divergent thinking process (see Table 2):

Can I think of transactions or events that would be considered expected but are accounted for by my explanation?
Can I think of transactions or events that aren’t accounted for by my explanation but are unusual?

The first question is designed for an individual to think about whether there are other events outside of the current issue that fit the explanation: “Does the explanation also address phenomena that aren’t related to or outside the scope of the surprising result that’s being studied?” If the answer is “yes,” then this is a case of overexplanation. Consider, for example, a scenario involving an increase in bad debts. Relaxing credit requirements may explain the increase, but they would also explain a growth in sales and falling employee morale due to working massive amounts of overtime to make products for sale.

The second question is designed to think about whether an explanation only accounts for part of the phenomenon being observed: “Does the explanation address only part of what’s being observed while leaving other important details unexplained?” If the answer is “yes,” then it’s an under-explanation. For example, consider a decline in sales. An economic downturn at the same time as the decline may be a possible explanation, but it might only be part of the problem. A drop in product quality or a drop in demand due to obsolescence could also be causing sales to decline.

If the answer to either screening question is “yes,” then the explanation needs to be discarded from consideration or modified to better address the concern. In the case of over-explanation, the reason is too general and may lead to action areas where none is needed while still not addressing the actual issue. For underexplanation, the reason is incomplete because it accounts for only a portion of the phenomenon observed, thus action may only address a symptom and not the actual root problem.

If the answer to both questions is “no,” then the explanation is viable. The chosen reason neither overexplains nor underexplains the issue at hand, making it more likely that the recommended solution or plan of action based on that reason will be more successful at addressing the actual cause of the issue.

Divergent and convergent thinking are two distinct processes that work in conjunction with each other to arrive at potential reasons for the results they observe. Yet, as previously noted, the two ways of thinking must be conducted separately and sequentially in order to obtain optimal results. Divergent thinking must be applied first in order to achieve a diverse set of potential reasons. This will maximize the probability of generating a feasible reason that explains the results correctly. After the set of potential reasons has been generated using the divergent thinking approach, convergent thinking should be used to methodically remove or modify the reasons that don’t fit with the surprising results.

If both divergent thinking and convergent thinking are done simultaneously, premature convergence can lead to a less-than-optimal reason being chosen, which may lead to taking the wrong course of action. Thus, it’s important with training to instruct employees in the use of both divergent thinking and convergent thinking and to use the types of thinking sequentially.

ORGANIZATIONAL TRAINING

Learning to apply divergent and convergent thinking can require a substantial time commitment. The process we’ve described here is designed to enhance critical thinking and problem-solving skills. It outlines a general approach that doesn’t provide specific guidance on the best methods to analyze data or complete a task but rather focuses on successful methods to think of a diverse set of reasons for any surprising results and then how to choose the best explanation for that result in order to be able to recommend the most appropriate actions or solutions.

Individuals can practice the approach we’ve described on their own, but each organization will likely have its own preferred way to approach the analyses. Plumlee, et al., used training modules in their study that could be employed in a concerted effort by a company, with supervisors training their employees. We estimate that a basic training session would take about two hours. Complete training with practice and feedback would require about four hours—which could grow longer with even more for intensive training.

One area where this training could be very effective in helping employees is data analytics. In the past decade, an increasing amount of accounting and financial work involves or relies on data analysis. Data availability has increased exponentially, and companies use or have developed software that generates sophisticated analytical results.

Typical data analysis procedures accounting professionals might be called on to perform include things such as ratio and trend analyses, which compare financial and nonfinancial data over time and against industry information to examine whether results achieved are in line with expectations for strategic actions. Additionally, analyses are forward-looking when performance measures examined are leading indicators.

In order to perform data analytics effectively, accounting professionals must exercise sufficient judgment to critically assess the implications of any surprising results that are found. The quality of judgments and understanding the best ways to conduct and interpret the information uncovered by data analytics have typically been a function of time spent on the job along with training. At the same time, however, it’s commonplace that many of these analyses are performed by newer professionals.

Training in metacognition will help these employees more effectively and creatively reach conclusions about what they’ve observed in their analysis. Since the method discussed provides general instruction, each organization can customize the approach to best fit its own operations, strategies, and goals. Implementing a training program can be worth the investment given the importance of critical thinking throughout the process of evaluating operating results. Avoiding potential failures with interpreting results that could be prevented would seem to warrant the consideration of metacognitive training.

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Critical Thinking in Professional Accounting Practice: Conceptions of Employers and Practitioners

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Samantha Sin ,
Alan Jones &
Zijian Wang

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Over the past three decades or so it has become commonplace to lament the failure of universities to equip accounting graduates with the attributes and skills or abilities required for professional accounting practice, particularly as the latter has had to adapt to the demands of a rapidly changing business environment. With the aid of academics, professional accounting bodies have developed lists of competencies, skills, and attributes considered necessary for successful accounting practice. Employers have on the whole endorsed these lists. In this way “critical thinking” has entered the lexicon of both accountants and their employers, and when employers are asked to rank a range of named competencies in order of importance, critical thinking or some roughly synonymous term is frequently ranked highly, often at the top or near the top of their list of desirables (see, for example, Albrecht and Sack 2000). Although practical obstacles, such as content-focused curricula, have emerged to the inclusion of critical thinking as a learning objective in tertiary-level accounting courses, the presence of these obstacles has not altered “the collective conclusion from the accounting profession that critical thinking skills are a prerequisite for a successful accounting career and that accounting educators should assist students in the development of these skills” (Young and Warren 2011, 859). However, a problem that has not yet been widely recognized may lie in the language used to survey accountants and their employers, who may not be comfortable or familiar with the abstract and technicalized pedagogical discourse, for instance, the use of the phrase “developing self-regulating critical reflective capacities for sustainable feedback,” in which much skills talk is couched.

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Sin, S., Jones, A., Wang, Z. (2015). Critical Thinking in Professional Accounting Practice: Conceptions of Employers and Practitioners. In: Davies, M., Barnett, R. (eds) The Palgrave Handbook of Critical Thinking in Higher Education. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137378057_26

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Managerial Auditing Journal

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Article publication date: 1 October 1997

Explains that many prestigious bodies, including the American Assembly of Collegiate Schools of Business and the Accounting Change Commission, have asked accounting educators to improve their students’ critical thinking skills. Suggests that the literature contains few examples of how to apply such skills in an accounting environment and how to teach such skills as efficiently as possible. Explains and provides examples of such critical thinking skills. Shows how to incorporate such skills in the classroom.

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Reinstein, A. and Bayou, M.E. (1997), "Critical thinking in accounting education: processes, skills and applications", Managerial Auditing Journal , Vol. 12 No. 7, pp. 336-342. https://doi.org/10.1108/02686909710180698

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41+ Critical Thinking Examples (Definition + Practices)

Critical thinking is an essential skill in our information-overloaded world, where figuring out what is fact and fiction has become increasingly challenging.

But why is critical thinking essential? Put, critical thinking empowers us to make better decisions, challenge and validate our beliefs and assumptions, and understand and interact with the world more effectively and meaningfully.

Critical thinking is like using your brain's "superpowers" to make smart choices. Whether it's picking the right insurance, deciding what to do in a job, or discussing topics in school, thinking deeply helps a lot. In the next parts, we'll share real-life examples of when this superpower comes in handy and give you some fun exercises to practice it.

Critical Thinking Process Outline

Critical thinking means thinking clearly and fairly without letting personal feelings get in the way. It's like being a detective, trying to solve a mystery by using clues and thinking hard about them.

It isn't always easy to think critically, as it can take a pretty smart person to see some of the questions that aren't being answered in a certain situation. But, we can train our brains to think more like puzzle solvers, which can help develop our critical thinking skills.

Here's what it looks like step by step:

Spotting the Problem: It's like discovering a puzzle to solve. You see that there's something you need to figure out or decide.

Collecting Clues: Now, you need to gather information. Maybe you read about it, watch a video, talk to people, or do some research. It's like getting all the pieces to solve your puzzle.

Breaking It Down: This is where you look at all your clues and try to see how they fit together. You're asking questions like: Why did this happen? What could happen next?

Checking Your Clues: You want to make sure your information is good. This means seeing if what you found out is true and if you can trust where it came from.

Making a Guess: After looking at all your clues, you think about what they mean and come up with an answer. This answer is like your best guess based on what you know.

Explaining Your Thoughts: Now, you tell others how you solved the puzzle. You explain how you thought about it and how you answered.

Checking Your Work: This is like looking back and seeing if you missed anything. Did you make any mistakes? Did you let any personal feelings get in the way? This step helps make sure your thinking is clear and fair.

And remember, you might sometimes need to go back and redo some steps if you discover something new. If you realize you missed an important clue, you might have to go back and collect more information.

Critical Thinking Methods

Just like doing push-ups or running helps our bodies get stronger, there are special exercises that help our brains think better. These brain workouts push us to think harder, look at things closely, and ask many questions.

It's not always about finding the "right" answer. Instead, it's about the journey of thinking and asking "why" or "how." Doing these exercises often helps us become better thinkers and makes us curious to know more about the world.

Now, let's look at some brain workouts to help us think better:

1. "What If" Scenarios

Imagine crazy things happening, like, "What if there was no internet for a month? What would we do?" These games help us think of new and different ideas.

Pick a hot topic. Argue one side of it and then try arguing the opposite. This makes us see different viewpoints and think deeply about a topic.

3. Analyze Visual Data

Check out charts or pictures with lots of numbers and info but no explanations. What story are they telling? This helps us get better at understanding information just by looking at it.

4. Mind Mapping

Write an idea in the center and then draw lines to related ideas. It's like making a map of your thoughts. This helps us see how everything is connected.

There's lots of mind-mapping software , but it's also nice to do this by hand.

5. Weekly Diary

Every week, write about what happened, the choices you made, and what you learned. Writing helps us think about our actions and how we can do better.

6. Evaluating Information Sources

Collect stories or articles about one topic from newspapers or blogs. Which ones are trustworthy? Which ones might be a little biased? This teaches us to be smart about where we get our info.

There are many resources to help you determine if information sources are factual or not.

7. Socratic Questioning

This way of thinking is called the Socrates Method, named after an old-time thinker from Greece. It's about asking lots of questions to understand a topic. You can do this by yourself or chat with a friend.

Start with a Big Question:

"What does 'success' mean?"

Dive Deeper with More Questions:

"Why do you think of success that way?" "Do TV shows, friends, or family make you think that?" "Does everyone think about success the same way?"

"Can someone be a winner even if they aren't rich or famous?" "Can someone feel like they didn't succeed, even if everyone else thinks they did?"

Look for Real-life Examples:

"Who is someone you think is successful? Why?" "Was there a time you felt like a winner? What happened?"

Think About Other People's Views:

"How might a person from another country think about success?" "Does the idea of success change as we grow up or as our life changes?"

Think About What It Means:

"How does your idea of success shape what you want in life?" "Are there problems with only wanting to be rich or famous?"

Look Back and Think:

"After talking about this, did your idea of success change? How?" "Did you learn something new about what success means?"

8. Six Thinking Hats

Edward de Bono came up with a cool way to solve problems by thinking in six different ways, like wearing different colored hats. You can do this independently, but it might be more effective in a group so everyone can have a different hat color. Each color has its way of thinking:

White Hat (Facts): Just the facts! Ask, "What do we know? What do we need to find out?"

Red Hat (Feelings): Talk about feelings. Ask, "How do I feel about this?"

Black Hat (Careful Thinking): Be cautious. Ask, "What could go wrong?"

Yellow Hat (Positive Thinking): Look on the bright side. Ask, "What's good about this?"

Green Hat (Creative Thinking): Think of new ideas. Ask, "What's another way to look at this?"

Blue Hat (Planning): Organize the talk. Ask, "What should we do next?"

When using this method with a group:

Explain all the hats.
Decide which hat to wear first.
Make sure everyone switches hats at the same time.
Finish with the Blue Hat to plan the next steps.

9. SWOT Analysis

SWOT Analysis is like a game plan for businesses to know where they stand and where they should go. "SWOT" stands for Strengths, Weaknesses, Opportunities, and Threats.

There are a lot of SWOT templates out there for how to do this visually, but you can also think it through. It doesn't just apply to businesses but can be a good way to decide if a project you're working on is working.

Strengths: What's working well? Ask, "What are we good at?"

Weaknesses: Where can we do better? Ask, "Where can we improve?"

Opportunities: What good things might come our way? Ask, "What chances can we grab?"

Threats: What challenges might we face? Ask, "What might make things tough for us?"

Steps to do a SWOT Analysis:

Goal: Decide what you want to find out.
Research: Learn about your business and the world around it.
Brainstorm: Get a group and think together. Talk about strengths, weaknesses, opportunities, and threats.
Pick the Most Important Points: Some things might be more urgent or important than others.
Make a Plan: Decide what to do based on your SWOT list.
Check Again Later: Things change, so look at your SWOT again after a while to update it.

Now that you have a few tools for thinking critically, let’s get into some specific examples.

Everyday Examples

Life is a series of decisions. From the moment we wake up, we're faced with choices – some trivial, like choosing a breakfast cereal, and some more significant, like buying a home or confronting an ethical dilemma at work. While it might seem that these decisions are disparate, they all benefit from the application of critical thinking.

10. Deciding to buy something

Imagine you want a new phone. Don't just buy it because the ad looks cool. Think about what you need in a phone. Look up different phones and see what people say about them. Choose the one that's the best deal for what you want.

11. Deciding what is true

There's a lot of news everywhere. Don't believe everything right away. Think about why someone might be telling you this. Check if what you're reading or watching is true. Make up your mind after you've looked into it.

12. Deciding when you’re wrong

Sometimes, friends can have disagreements. Don't just get mad right away. Try to see where they're coming from. Talk about what's going on. Find a way to fix the problem that's fair for everyone.

13. Deciding what to eat

There's always a new diet or exercise that's popular. Don't just follow it because it's trendy. Find out if it's good for you. Ask someone who knows, like a doctor. Make choices that make you feel good and stay healthy.

14. Deciding what to do today

Everyone is busy with school, chores, and hobbies. Make a list of things you need to do. Decide which ones are most important. Plan your day so you can get things done and still have fun.

15. Making Tough Choices

Sometimes, it's hard to know what's right. Think about how each choice will affect you and others. Talk to people you trust about it. Choose what feels right in your heart and is fair to others.

16. Planning for the Future

Big decisions, like where to go to school, can be tricky. Think about what you want in the future. Look at the good and bad of each choice. Talk to people who know about it. Pick what feels best for your dreams and goals.

Job Examples

17. solving problems.

Workers brainstorm ways to fix a machine quickly without making things worse when a machine breaks at a factory.

18. Decision Making

A store manager decides which products to order more of based on what's selling best.

19. Setting Goals

A team leader helps their team decide what tasks are most important to finish this month and which can wait.

20. Evaluating Ideas

At a team meeting, everyone shares ideas for a new project. The group discusses each idea's pros and cons before picking one.

21. Handling Conflict

Two workers disagree on how to do a job. Instead of arguing, they talk calmly, listen to each other, and find a solution they both like.

22. Improving Processes

A cashier thinks of a faster way to ring up items so customers don't have to wait as long.

23. Asking Questions

Before starting a big task, an employee asks for clear instructions and checks if they have the necessary tools.

24. Checking Facts

Before presenting a report, someone double-checks all their information to make sure there are no mistakes.

25. Planning for the Future

A business owner thinks about what might happen in the next few years, like new competitors or changes in what customers want, and makes plans based on those thoughts.

26. Understanding Perspectives

A team is designing a new toy. They think about what kids and parents would both like instead of just what they think is fun.

School Examples

27. researching a topic.

For a history project, a student looks up different sources to understand an event from multiple viewpoints.

28. Debating an Issue

In a class discussion, students pick sides on a topic, like school uniforms, and share reasons to support their views.

29. Evaluating Sources

While writing an essay, a student checks if the information from a website is trustworthy or might be biased.

30. Problem Solving in Math

When stuck on a tricky math problem, a student tries different methods to find the answer instead of giving up.

31. Analyzing Literature

In English class, students discuss why a character in a book made certain choices and what those decisions reveal about them.

32. Testing a Hypothesis

For a science experiment, students guess what will happen and then conduct tests to see if they're right or wrong.

33. Giving Peer Feedback

After reading a classmate's essay, a student offers suggestions for improving it.

34. Questioning Assumptions

In a geography lesson, students consider why certain countries are called "developed" and what that label means.

35. Designing a Study

For a psychology project, students plan an experiment to understand how people's memories work and think of ways to ensure accurate results.

36. Interpreting Data

In a science class, students look at charts and graphs from a study, then discuss what the information tells them and if there are any patterns.

Critical Thinking Puzzles

Not all scenarios will have a single correct answer that can be figured out by thinking critically. Sometimes we have to think critically about ethical choices or moral behaviors.

Here are some mind games and scenarios you can solve using critical thinking. You can see the solution(s) at the end of the post.

37. The Farmer, Fox, Chicken, and Grain Problem

A farmer is at a riverbank with a fox, a chicken, and a grain bag. He needs to get all three items across the river. However, his boat can only carry himself and one of the three items at a time.

Here's the challenge:

If the fox is left alone with the chicken, the fox will eat the chicken.
If the chicken is left alone with the grain, the chicken will eat the grain.

How can the farmer get all three items across the river without any item being eaten?

38. The Rope, Jar, and Pebbles Problem

You are in a room with two long ropes hanging from the ceiling. Each rope is just out of arm's reach from the other, so you can't hold onto one rope and reach the other simultaneously.

Your task is to tie the two rope ends together, but you can't move the position where they hang from the ceiling.

You are given a jar full of pebbles. How do you complete the task?

39. The Two Guards Problem

Imagine there are two doors. One door leads to certain doom, and the other leads to freedom. You don't know which is which.

In front of each door stands a guard. One guard always tells the truth. The other guard always lies. You don't know which guard is which.

You can ask only one question to one of the guards. What question should you ask to find the door that leads to freedom?

40. The Hourglass Problem

You have two hourglasses. One measures 7 minutes when turned over, and the other measures 4 minutes. Using just these hourglasses, how can you time exactly 9 minutes?

41. The Lifeboat Dilemma

Imagine you're on a ship that's sinking. You get on a lifeboat, but it's already too full and might flip over.

Nearby in the water, five people are struggling: a scientist close to finding a cure for a sickness, an old couple who've been together for a long time, a mom with three kids waiting at home, and a tired teenager who helped save others but is now in danger.

You can only save one person without making the boat flip. Who would you choose?

42. The Tech Dilemma

You work at a tech company and help make a computer program to help small businesses. You're almost ready to share it with everyone, but you find out there might be a small chance it has a problem that could show users' private info.

If you decide to fix it, you must wait two more months before sharing it. But your bosses want you to share it now. What would you do?

43. The History Mystery

Dr. Amelia is a history expert. She's studying where a group of people traveled long ago. She reads old letters and documents to learn about it. But she finds some letters that tell a different story than what most people believe.

If she says this new story is true, it could change what people learn in school and what they think about history. What should she do?

The Role of Bias in Critical Thinking

Have you ever decided you don’t like someone before you even know them? Or maybe someone shared an idea with you that you immediately loved without even knowing all the details.

This experience is called bias, which occurs when you like or dislike something or someone without a good reason or knowing why. It can also take shape in certain reactions to situations, like a habit or instinct.

Bias comes from our own experiences, what friends or family tell us, or even things we are born believing. Sometimes, bias can help us stay safe, but other times it stops us from seeing the truth.

Not all bias is bad. Bias can be a mechanism for assessing our potential safety in a new situation. If we are biased to think that anything long, thin, and curled up is a snake, we might assume the rope is something to be afraid of before we know it is just a rope.

While bias might serve us in some situations (like jumping out of the way of an actual snake before we have time to process that we need to be jumping out of the way), it often harms our ability to think critically.

How Bias Gets in the Way of Good Thinking

Selective Perception: We only notice things that match our ideas and ignore the rest.

It's like only picking red candies from a mixed bowl because you think they taste the best, but they taste the same as every other candy in the bowl. It could also be when we see all the signs that our partner is cheating on us but choose to ignore them because we are happy the way we are (or at least, we think we are).

Agreeing with Yourself: This is called “ confirmation bias ” when we only listen to ideas that match our own and seek, interpret, and remember information in a way that confirms what we already think we know or believe.

An example is when someone wants to know if it is safe to vaccinate their children but already believes that vaccines are not safe, so they only look for information supporting the idea that vaccines are bad.

Thinking We Know It All: Similar to confirmation bias, this is called “overconfidence bias.” Sometimes we think our ideas are the best and don't listen to others. This can stop us from learning.

Have you ever met someone who you consider a “know it”? Probably, they have a lot of overconfidence bias because while they may know many things accurately, they can’t know everything. Still, if they act like they do, they show overconfidence bias.

There's a weird kind of bias similar to this called the Dunning Kruger Effect, and that is when someone is bad at what they do, but they believe and act like they are the best .

Following the Crowd: This is formally called “groupthink”. It's hard to speak up with a different idea if everyone agrees. But this can lead to mistakes.

An example of this we’ve all likely seen is the cool clique in primary school. There is usually one person that is the head of the group, the “coolest kid in school”, and everyone listens to them and does what they want, even if they don’t think it’s a good idea.

How to Overcome Biases

Here are a few ways to learn to think better, free from our biases (or at least aware of them!).

Know Your Biases: Realize that everyone has biases. If we know about them, we can think better.

Listen to Different People: Talking to different kinds of people can give us new ideas.

Ask Why: Always ask yourself why you believe something. Is it true, or is it just a bias?

Understand Others: Try to think about how others feel. It helps you see things in new ways.

Keep Learning: Always be curious and open to new information.

In today's world, everything changes fast, and there's so much information everywhere. This makes critical thinking super important. It helps us distinguish between what's real and what's made up. It also helps us make good choices. But thinking this way can be tough sometimes because of biases. These are like sneaky thoughts that can trick us. The good news is we can learn to see them and think better.

There are cool tools and ways we've talked about, like the "Socratic Questioning" method and the "Six Thinking Hats." These tools help us get better at thinking. These thinking skills can also help us in school, work, and everyday life.

We’ve also looked at specific scenarios where critical thinking would be helpful, such as deciding what diet to follow and checking facts.

Thinking isn't just a skill—it's a special talent we improve over time. Working on it lets us see things more clearly and understand the world better. So, keep practicing and asking questions! It'll make you a smarter thinker and help you see the world differently.

Critical Thinking Puzzles (Solutions)

The farmer, fox, chicken, and grain problem.

The farmer first takes the chicken across the river and leaves it on the other side.
He returns to the original side and takes the fox across the river.
After leaving the fox on the other side, he returns the chicken to the starting side.
He leaves the chicken on the starting side and takes the grain bag across the river.
He leaves the grain with the fox on the other side and returns to get the chicken.
The farmer takes the chicken across, and now all three items -- the fox, the chicken, and the grain -- are safely on the other side of the river.

The Rope, Jar, and Pebbles Problem

Take one rope and tie the jar of pebbles to its end.
Swing the rope with the jar in a pendulum motion.
While the rope is swinging, grab the other rope and wait.
As the swinging rope comes back within reach due to its pendulum motion, grab it.
With both ropes within reach, untie the jar and tie the rope ends together.

The Two Guards Problem

The question is, "What would the other guard say is the door to doom?" Then choose the opposite door.

The Hourglass Problem

Start both hourglasses.
When the 4-minute hourglass runs out, turn it over.
When the 7-minute hourglass runs out, the 4-minute hourglass will have been running for 3 minutes. Turn the 7-minute hourglass over.
When the 4-minute hourglass runs out for the second time (a total of 8 minutes have passed), the 7-minute hourglass will run for 1 minute. Turn the 7-minute hourglass again for 1 minute to empty the hourglass (a total of 9 minutes passed).

The Boat and Weights Problem

Take the cat over first and leave it on the other side. Then, return and take the fish across next. When you get there, take the cat back with you. Leave the cat on the starting side and take the cat food across. Lastly, return to get the cat and bring it to the other side.

The Lifeboat Dilemma

There isn’t one correct answer to this problem. Here are some elements to consider:

Moral Principles: What values guide your decision? Is it the potential greater good for humanity (the scientist)? What is the value of long-standing love and commitment (the elderly couple)? What is the future of young children who depend on their mothers? Or the selfless bravery of the teenager?
Future Implications: Consider the future consequences of each choice. Saving the scientist might benefit millions in the future, but what moral message does it send about the value of individual lives?
Emotional vs. Logical Thinking: While it's essential to engage empathy, it's also crucial not to let emotions cloud judgment entirely. For instance, while the teenager's bravery is commendable, does it make him more deserving of a spot on the boat than the others?
Acknowledging Uncertainty: The scientist claims to be close to a significant breakthrough, but there's no certainty. How does this uncertainty factor into your decision?
Personal Bias: Recognize and challenge any personal biases, such as biases towards age, profession, or familial status.

The Tech Dilemma

Again, there isn’t one correct answer to this problem. Here are some elements to consider:

Evaluate the Risk: How severe is the potential vulnerability? Can it be easily exploited, or would it require significant expertise? Even if the circumstances are rare, what would be the consequences if the vulnerability were exploited?
Stakeholder Considerations: Different stakeholders will have different priorities. Upper management might prioritize financial projections, the marketing team might be concerned about the product's reputation, and customers might prioritize the security of their data. How do you balance these competing interests?
Short-Term vs. Long-Term Implications: While launching on time could meet immediate financial goals, consider the potential long-term damage to the company's reputation if the vulnerability is exploited. Would the short-term gains be worth the potential long-term costs?
Ethical Implications : Beyond the financial and reputational aspects, there's an ethical dimension to consider. Is it right to release a product with a known vulnerability, even if the chances of it being exploited are low?
Seek External Input: Consulting with cybersecurity experts outside your company might be beneficial. They could provide a more objective risk assessment and potential mitigation strategies.
Communication: How will you communicate the decision, whatever it may be, both internally to your team and upper management and externally to your customers and potential users?

The History Mystery

Dr. Amelia should take the following steps:

Verify the Letters: Before making any claims, she should check if the letters are actual and not fake. She can do this by seeing when and where they were written and if they match with other things from that time.
Get a Second Opinion: It's always good to have someone else look at what you've found. Dr. Amelia could show the letters to other history experts and see their thoughts.
Research More: Maybe there are more documents or letters out there that support this new story. Dr. Amelia should keep looking to see if she can find more evidence.
Share the Findings: If Dr. Amelia believes the letters are true after all her checks, she should tell others. This can be through books, talks, or articles.
Stay Open to Feedback: Some people might agree with Dr. Amelia, and others might not. She should listen to everyone and be ready to learn more or change her mind if new information arises.

Ultimately, Dr. Amelia's job is to find out the truth about history and share it. It's okay if this new truth differs from what people used to believe. History is about learning from the past, no matter the story.

Experimenter Bias (Definition + Examples)
Hasty Generalization Fallacy (31 Examples + Similar Names)
Ad Hoc Fallacy (29 Examples + Other Names)
Confirmation Bias (Examples + Definition)
Equivocation Fallacy (26 Examples + Description)

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Critical thinking for accounting and finance.

No skill is more important in business today than the ability to understand, analyze, and act on information effectively and responsibly. Finance and Accounting professionals who are also savvy, sharp critical thinkers can cut through ambiguity and information overload to quickly zero in on what is really important. This session shares cognitive techniques and critical thinking tools to enhance decision-making under pressure and strengthen your impact.

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Examine cognitive techniques and critical thinking tools to enhance decision-making under pressure and strengthen your impact

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Cognitive techniques
Critical thinking tools
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Improving the Critical Thinking Skills of Accounting Students

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The technology and Data Analytics developments affecting the accounting profession in turn have a profound effect on accounting curriculum. Accounting programs need fully-integrated accounting curriculum to develop students with strong analytic and critical thinking skills that complement their accounting knowledge. This will meet the profession's expectation that accounting students have expert level skills in both technical accounting knowledge and Data Analytics. This paper provides a framework and the resources for creating a Data Analytics-infused accounting curriculum. Specifically, using the Diffusion of Innovation Theory, we apply the theory's five stages to the infusion of Data Analytics into the accounting curriculum: Knowledge, Persuasion, Decision, Implementation, and Confirmation. We formulate an Analytics Value Cube to guide the use of different analytic techniques as accounting programs integrate. We recommend free tools, questions, and cases for use across the curriculum. While our focus is on accounting programs new to Data Analytics, these resources are also useful to accounting programs and practitioners that wish to expand their data analytic offerings.

Improving the Critical Thinking Skills of Accounting Students Using the Framework-Based Teaching Approach

The purpose of this paper is to examine how the Framework-based Teaching (FBT) approach improves the critical thinking skill among accounting students at tertiary education level. This qualitative study is conducted using the Scholarship of Teaching and Learning (SOTL) approach, where reflections from lecturers ‘experience in teaching and learning process are gathered. Data are collected from both accounting lecturers and students who implemented the FBT approach using the inquiry-based learning technique in the financial accounting course. Data are analysed using content analysis. The results from the study indicate that, based on lecturers’ reflection, students are pushed to think in depth in classes using the inquiry based learning of the FBT approach. This is supported by students’ feedback on their own critical thinking ability. Thus, the FBT approach improves the critical thinking skills among accounting students. The implication of this study is the practicability of the FBT approach in teaching financial accounting course at university level in encouraging critical thinking skills.

Developing Critical Thinking Skills in Accounting Students

Facebook as a pedagogical tool in fostering students’ critical thinking skills.

This study examineswhether the implementation of Facebook as a pedagogical tool enhances critical thinking skills among final year accounting students who enrolled in financial statement analysis course. A Facebook group was set up and students were encouraged students to use the Facebook group as a platform to discuss and share resources relating to their group project. The critical thinking skills is analysed based on students’ achievement in addressing thegroup project, which is assessed using a rubric for critical thinking skills. The study finds that the use of the Facebook group fosters critical thinking skills among students with the Facebook group (the experimental group) as compared to students without the Facebook group (the control group). These findings are noteworthy since final year accounting students are struggling with critical thinking skills, yet it is an essential skill for accounting professionals. The results of this study is hoped to encourage educators in the digital age to make use of social media as a technology-enhanced learning environment for the benefits of students.

Coffee Anyone? An Unstructured Capital Budgeting Project To Encourage Critical Thinking Skills In Accounting Students

The case for arts education as a required component of an accounting students college education.

A recent study has highlighted the importance of student perceptions of the accounting profession and the resultant self-selection process. This self-selection process may result in students self-selecting into the accounting area who are deficient in the essential qualities for success in the modern accounting profession. Warnock (1996) reports that among 1st year accounting students a still pervasive image of the accountant is that it is not particularly important to have either imagination or verbal qualities or communication or critical thinking skills and thus students who are weak in the above qualities often self-select into accounting as a major. The purpose of this paper is to introduce into the accounting literature the results of an emerging body of research that suggests arts education can enhance or help accounting students overcome these deficiencies.

Enhancing critical thinking: accounting students’ perceptions

Purpose The purpose of this paper is to demonstrate how assessment design was used to enhance students’ critical thinking in a subject concerned with business enterprise systems. The study shows positive results and favorable perceptions of the merit of the approach. Design/methodology/approach A case study approach was used to examine how the problem-based assessment task was redesigned to enhance students’ critical thinking. The study documents post-graduate accounting students’ achievements, including some comparison with results from an earlier version of the task. Data were collected using surveys and anonymous student comments. Findings The case study reveals that the merit of the assessment design lay in presenting students with new material that generated some cognitive dissonance, which had to be resolved, rather than just applying subject knowledge to a new scenario. By requiring students to assimilate and harmonize the materials, they were encouraged to think more critically about how their prior learning applied to the problem. Originality/value Congruent with widespread calls by employers and professional bodies, there is renewed focus on the importance of developing critical thinking skills as an integral part of higher education courses. Whilst achievement is usually realized interdependently through communication, problem solving and analysis, critical thinking must be fostered in the context of the specific professional knowledge. This study contributes knowledge about how students’ critical thinking may be fostered, with the added difficulty that the context involves a focus on the role and value of technology.

Innovation of flipped learning encouraging better communication and critical thinking skills among accounting students

Coffee anyone - part 2: additional business opportunity statements for unstructured capital budgeting projects.

This paper builds on an earlier paper that presented an unstructured, semester-long team-based capital budgeting project for senior level undergraduate accounting students. Successfully completing this project required accounting students to step outside of their narrow accounting transactions framework and to apply extensive organizational, analytical, information gathering, and critical thinking skills. This extension paper provides two additional Business Opportunity Statements that can be assigned to student groups for semester projects. Utilizing these additional Statements will allow faculty to challenge consecutive semesters of students.

Thinking Higher: Developing Critical Thinking Skills in Pre-Reading and Reading Activities

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Why Critical Thinking Is Important for Careers in Accounting

Critical thinking skills are an asset in every industry, but some might be surprised to know that this type of thinking is especially important for success in accounting careers. Accounting is not all about crunching numbers, as one might think. Accounting professions have evolved, with advancements in technology and changes within various industries. Today, those in the accounting professions need to be able to implement strategies of critical thinking in order to analyze information, determine problems or areas of improvement, and develop logical solutions.

The moment when you apply critical thinking skills to a career in accounting, you’ll ensure a successful future for yourself in the industry. Here’s what critical thinking looks like, and why it’s important for accounting professionals.

What You Should Know That Defines Critical Thinking

Critical thinking is an innovative way of thinking in which someone assesses a problem by raising important questions, and wondering what can be improved upon. A critical thinker gathers new information that can be used to analyze and inform unique strategies to address an issue at hand. Critical thinkers are open-minded and accepting of unconventional approaches, rather than developing attachments to traditional schools of thought.

The work of those with careers in accounting increasingly takes place in more complex environments, and accounting professionals are tackling new kinds of issues. By using critical thinking, an accounting professional looks beyond the numbers and conventional processes in place to determine new strategies, and increase the effectiveness of workflows.

Why Critical Thinking is Important for Accounting Professions

Today, accounting professions look a lot different than they did twenty, or even ten years ago. Those in the accounting professions are often in charge of updating the financial frameworks of an organization to fit with the changes brought on by advancements in technology. Thanks to the integration of automated processes and calculations, the accounting industry has shifted from a focus on spreadsheets and specificities to the practical, hands-on implementation of innovative accounting strategies. Accounting professionals may be focused on making predictions or helping businesses to create more profitable policies, rather than mechanically crunching an organization’s numbers in line with traditional processes.

Critical thinking is an important skill for those with careers in accounting

Today, professionals with accounting training backgrounds must be able to apply creative solutions to problems that businesses are facing, helping them to keep up with competitors and improve the profitability of their business model. Employers increasingly value accounting professionals who can apply creative thinking skills and problem-solving capabilities in order to come up with solutions based on adept analysis of data and systems knowledge.

Improving Your Critical Thinking Skills

There are a few ways that professionals seeking accounting careers can improve their critical thinking skills. When looking at a situation or a problem, someone can first apply critical thinking by having a good understanding of the goal before attempting to develop solutions. This can be achieved simply by asking: “What is the desired outcome?” Next, critical thinking can be improved upon by becoming aware of inherent biases or attachment to traditional ways of accomplishing a task. By understanding that these biases and understandings have their limits, an individual will be more likely to be able to recognize when something could be improved upon.

Lastly, individuals should conduct research on possible solutions, discussing and collaborating with others who would be able to contribute a unique perspective. By brainstorming and exploring all possible avenues of thought, an individual will prepare themselves to think critically about the situation at hand. Are you ready to apply your critical thinking skills to an accounting course ?

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25 Critical Thinking Examples

critical thinking examples and definition, explained below

Critical thinking is the ability to analyze information and make reasoned decisions. It involves suspended judgment, open-mindedness, and clarity of thought.

It involves considering different viewpoints and weighing evidence carefully. It is essential for solving complex problems and making good decisions.

People who think critically are able to see the world in a more nuanced way and understand the interconnectedness of things. They are also better able to adapt to change and handle uncertainty.

In today’s fast-paced world, the ability to think critically is more important than ever and necessary for students and employees alike.

Critical Thinking Examples

1. identifying strengths and weaknesses.

Critical thinkers don’t just take things at face value. They stand back and contemplate the potential strengths and weaknesses of something and then make a decision after contemplation.

This helps you to avoid excessive bias and identify possible problems ahead of time.

For example, a boxer about to get in the ring will likely need to evaluate the strengths and weaknesses of his opponent. He might learn that his opponent’s left hook is very strong, but his opponent also gets tired after the third round. With this knowledge, he can go into the bout with strong defenses in the first three rounds before going on the offense.

Here, the boxer’s critical thinking skills will help him win his match.

2. Creating a Hypothesis based on Limited Data

When scientists set out to test a new theory, they first need to develop a hypothesis. This is an educated guess about how things work, based on what is already known.

Once a hypothesis has been developed, experiments can be designed to test it.

However, sometimes scientists may find themselves working with limited data. In such cases, they may need to make some assumptions in order to form a hypothesis.

For example, if they are studying a phenomenon that occurs infrequently, they may need to extrapolate from the data they do have in order to form a hypothesis.

Here, the scientist is engaged in critical thinking: they use the limited data to come up with a tentative judgment.

3. Moderating a Debate

A debate moderator needs to have strong critical thinking skills. They need to use objective evaluations, analysis, and critique to keep the discussion on track and ensure that all sides are heard fairly.

This means being able to identify when a point has been made sufficiently, or when someone is beginning to veer off topic and being able to direct the conversation accordingly.

Similarly, they need to be able to assess each argument objectively and consider its merits, rather than getting caught up in the emotion of the debate. If someone is using an unfair point or one that is not factual, the moderator needs to be switched on and identify this.

By remaining calm and impartial, the moderator can help to ensure that a debate is productive and respectful.

4. Judging and Adjudicating

A judge or adjudicator needs to weigh the evidence and make a determination based on the facts.

This requires the adjudicator to be able to try to see both sides of an argument. They need the ability to see past personal biases and to critically evaluate the credibility of all sides.

In addition, judges and adjudicators must be able to think quickly and make sound decisions in the face of complex issues.

For example, if you were to be adjudicating the above debate, you need to hear both sides of the argument and then decide who won. It’s your job to evaluate, see strengths and weaknesses in arguments, and come to a conclusion.

5. Grading an Essay

Teachers need critical thinking skills when grading essays so that they can effectively assess the quality of the writing. By critically analyzing the essay, teachers can identify any errors or weaknesses in the argument.

Furthermore, they can also determine whether the essay meets the required standards for the assignment. Even a very well-written essay may deserve a lower grade if the essay doesn’t directly answer the essay question.

A teacher needs to be able to read an essay and understand not only what the student is trying to say, but also how well they are making their argument. Are they using evidence effectively? Are they drawing valid conclusions? A teacher needs to be able to evaluate an essay holistically in order to give a fair grade.

In order to properly evaluate an essay, teachers need to be able to think critically about the writing. Only then can they provide an accurate assessment of the work.

6. Active Reading

Active reading is a skill that requires the reader to be engaged with the text in order to fully understand it. This means not only being able to read the words on the page, but also being able to interpret the meaning behind them.

In order to do this, active readers need to have good critical thinking skills.

They need to be able to ask questions about the text and look for evidence to support their answers. Additionally, active readers need to be able to make connections between the text and their own experiences.

Active reading leads to better comprehension and retention of information.

7. Deciding Whether or Not to Believe Something

When trying to determine whether or not to believe something, you’re engaging in critical thinking.

For example, you might need to consider the source of the information. If the information comes from a reliable source, such as a reputable news organization or a trusted friend, then it is more likely to be accurate.

However, if the source is less reliable, such as an anonymous website or a person with a known bias, then the information should be viewed with more skepticism.

In addition, it is important to consider the evidence that is being presented. If the evidence is well-supported and logically presented, then it is more likely to be true. However, if the evidence is weak or relies on fallacious reasoning, then the claim is less likely to be true.

8. Determining the Best Solution to a Situation

Determining the best solution to a problem generally requires you to critique the different options. There are often many different factors to consider, and it can be difficult to know where to start.

However, there are some general guidelines that can help to make the process a little easier.

For example, if you have a few possible solutions to the problem, it is important to weigh the pros and cons of each one. Consider both the short-term and long-term effects of each option before making a decision.

Furthermore, it is important to be aware of your own biases. Be sure to consider all of the options objectively, without letting your personal preferences get in the way.

9. Giving Formative Feedback

Formative feedback is feedback that you give to someone part-way through a learning experience. To do this, you need to think critically.

For example, one thing you need to do is see where the student’s strengths and weaknesses like. Perhaps the student is doing extremely well at a task, so your feedback might be that they should try to extend themselves by adding more complexity to the task.

Or, perhaps the student is struggling, so you suggest to them that they approach the learning experience from a different angle.

10. Giving Summative Feedback

Summative feedback occurs at the end of a learning scenario. For example, the written feedback at the end of an essay or on a report card is summative.

When providing summative feedback, it is important to take a step back and consider the situation from multiple perspectives. What are areas for improvement and where exactly might the student have missed some key points? How could the student have done better?

Asking yourself these questions is all part of the process of giving feedback, and they can all be considered examples of critical thinking. You’re literally critiquing the student’s work and identifying opportunities for improvement.

11. Evaluating Evidence

When evaluating evidence, critical thinkers take a step back and look at the bigger picture. They consider all of the available information and weigh it up. They look at logical flaws, the reliability of the evidence, and its validity.

This process allows them to arrive at a conclusion that is based on sound reasoning, rather than emotion or personal bias.

For example, when a social scientist looks at the evidence from his study, he needs to evaluate whether the data was corrupted and ensure the methodology was sound in order to determine if the evidence is valuable or not.

12. Media Literacy

Media literacy seems to be in short supply these days. Too many people take information off the internet or television and just assume it is true.

A person with media literacy, however, will not just trust what they see and read. Instead, they look at the data and weigh up the evidence. They will see if there was a sound study to back up claims. They will see if there is bias in the media source and whether it’s just following an ideological line.

Furthermore, they will make sure they seek out trustworthy media sources. These are not just media sources you like or that confirm your own point of view. They need to be sources that do their own research, find solid data, and don’t pursue one blind agenda.

13. Asking your Own Questions

Asking your own questions is an important part of critical thinking. When you ask questions, you are forcing yourself to think more deeply about the information you are considering.

Asking questions also allows you to gather more information from others who may have different perspectives.

This helps you to better understand the issue and to come up with your own conclusions.

So, often at schools, we give students a list of questions to ask about something in order to dig deeper into it. For example, in a book review lesson, the teacher might give a list of questions to ask about the book’s characters and plot.

14. Conducting Rigorous Research

Research is a process of inquiry that encompasses the gathering of data, interpretation of findings, and communication of results. The researcher needs to engage in critical thinking throughout the process, but most importantly, when designing their methodology.

Research can be done through a variety of methods, such as experiments, surveys, interviews, and observations. Each method has strengths and weaknesses.

Once the data has been collected, it must be analyzed and interpreted. This is often done through statistical methods or qualitative analysis.

Research is an essential tool for discovering new knowledge and for solving problems, but researchers need to think critically about how valid and reliable their data truly is.

15. Examining your own Beliefs and Prejudices

It’s important to examine your own beliefs and prejudices in order to ensure that they are fair and accurate. People who don’t examine their own beliefs have not truly critically examined their lives.

One way to do this is to take the time to consider why you believe what you do. What experiences have you had that have led you to this belief? Are there other ways to interpret these experiences? It’s also important to be aware of the potential for confirmation bias , which is when we seek out information that confirms our existing beliefs, while ignoring information that contradicts them.

This can lead us to hold onto inaccurate or unfair beliefs even when presented with evidence to the contrary.

To avoid this, it’s important to seek out diverse perspectives, and to be open-minded when considering new information. By taking these steps, you can help ensure that your beliefs are fair and accurate.

16. Looking at a Situation from Multiple Perspectives

One of the most important critical thinking skills that you can learn in life is how to look at a situation from multiple perspectives.

Being able to see things from different angles can help you to understand complex issues, spot potential problems, and find creative solutions. It can also help you to build better relationships, as you will be able to see where others are coming from and find common ground.

There are a few simple techniques that you can use to develop this skill.

First, try to imagine how someone else would feel in the same situation.

Second, put yourself in their shoes and try to see things from their point of view.

Finally, ask yourself what other factors may be influencing their perspective. By taking the time to view things from multiple angles, you will be better prepared to deal with whatever life throws your way.

17. Considering Implications before Taking Action

When faced with a difficult decision, it is important to consider the implications of each possible action before settling on a course of action.

This is because the consequences of our actions can be far-reaching and often unforeseen.

For example, a seemingly small decision like whether to attend a party or not might have much larger implications. If we decide to go to the party, we might miss an important deadline at work.

However, if we stay home, we might miss out on an opportunity to meet new people and make valuable connections.

In either case, our choice can have a significant impact on our lives.

Fortunately, critical thinking can help people to make well-informed decisions that could have a positive impact on their lives.

For example, you might have to weight up the pros and cons of attending the party and identify potential downsides, like whether you might be in a car with an impaired driver, and whether the party is really worth losing your job.

Having weighed up the potential outcomes, you can make a more rational and informed decision.

18. Reflective Practice

Reflecting on your actions is an important part of critical thinking. When you take the time to reflect, you are able to step back and examine your choices and their consequences more objectively.

This allows you to learn from your mistakes and make better decisions in the future.

In order to reflect effectively, it is important to be honest with yourself and open to learning new things. You must also be willing to question your own beliefs and assumptions. By taking these steps, you can develop the critical thinking skills that are essential for making sound decisions next time.

This will also, fortunately, help you to constantly improve upon yourself.

19. Problem-Solving

Problem-solving requires the ability to think critically in order to accurately assess a situation and determine the best course of action.

This means being able to identify the root cause of a problem , as well as any potential obstacles that may stand in the way of a solution. It also involves breaking down a problem into smaller, more manageable pieces in order to more easily find a workable solution.

In addition, critical thinking skills also require the ability to think creatively in order to come up with original solutions to these problems.

Go Deeper: Problem-Solving Examples

20. Brainstorming New Solutions

When brainstorming new solutions , critical thinking skills are essential in order to generate fresh ideas and identify potential issues.

For example, the ability to identify the problems with the last solution you tried is important in order to come up with better solutions this time. Similarly, analytical thinking is necessary in order to evaluate the feasibility of each idea. Furthermore, it is also necessary to consider different perspectives and adapt to changing circumstances.

By utilizing all of these critical thinking skills, it will be possible to develop innovative solutions that are both practical and effective.

21. Reserving Judgment

A key part of critical thinking is reserving judgment. This means that we should not rush to conclusions, but instead take the time to consider all the evidence before making up our minds.

By reserving judgment, we can avoid making premature decisions that we might later regret. We can also avoid falling victim to confirmation bias, which is the tendency to only pay attention to information that supports our existing beliefs.

Instead, by keeping an open mind and considering all the evidence, we can make better decisions and reach more accurate conclusions.

22. Identifying Deceit

Critical thinking is an important skill to have in any situation, but it is especially important when trying to identify deceit.

There are a few key things to look for when using critical thinking to identify deceit.

First, pay attention to the person’s body language. Second, listen closely to what the person is saying and look for any inconsistencies. Finally, try to get a sense of the person’s motive – why would they want to deceive you?

Each of these questions helps you to not just take things at their face value. Instead, you’re critiquing the situation and coming to a conclusion using all of your intellect and senses, rather than just believing what you’re told.

23. Being Open-Minded to New Evidence that Contradicts your Beliefs

People with critical thinking skills are more open-minded because they are willing to consider different points of view and evidence.

They also realize that their own beliefs may be wrong and are willing to change their minds if new information is presented.

Similarly, people who are not critical thinkers tend to be close-minded because they fail to critique themselves and challenge their own mindset. This can lead to conflicts, as closed-minded people are not willing to budge on their beliefs even when presented with contradictory evidence.

Critical thinkers, on the other hand, are able to have more productive conversations as they are willing to listen to others and consider different viewpoints. Ultimately, being open-minded and willing to change one’s mind is a sign of intelligence and maturity.

24. Accounting for Bias

We all have biases, based on our individual experiences, perspectives, and beliefs. These can lead us to see the world in a certain way and to interpret information in a way that supports our existing views.

However, if we want to truly understand an issue, it is important to try to put aside our personal biases and look at the evidence objectively.

This is where critical thinking skills come in.

By using critical thinking, we can examine the evidence dispassionately and assess different arguments without letting our own prejudices get in the way. Start by looking at weaknesses and logical flaws in your own thinking.

Play the devil’s advocate.

In this way, you can start to get a more accurate picture of an issue and make more informed decisions.

25. Basing your Beliefs on Logic and Reasoning

In order to lead a successful and fulfilling life, it is important to base your beliefs on logic and reasoning.

This does not mean that you should never believe in something without evidence, but it does mean that you should be thoughtful and intentional about the things that you choose to believe.

One way to ensure that your beliefs are based on logic and reasoning is to seek out reliable sources of information. Another method is to use thought games to follow all your thoughts to their logical conclusions.

By basing your beliefs on logic and reasoning, you will be more likely to make sound decisions, and less likely to be swayed by emotions or misinformation.

Critical thinking is an important skill for anyone who wants to be successful in the modern world. It allows us to evaluate information and make reasoned decisions, rather than simply accepting things at face value.

Thus, employers often want to employ people with strong critical thinking skills. These employees will be able to solve problems by themselves and identify ways to improve the workplace. They will be able to push back against bad decisions and use their own minds to make good decisions.

Furthermore, critical thinking skills are important for students. This is because they need to be able to evaluate information and think through problems with a critical mindset in order to learn and improve.

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 5 Top Tips for Succeeding at University
Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 50 Durable Goods Examples
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Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 30 Globalization Pros and Cons

1. Determine the Problem

This is also known as "establishing the problem statement." The techniques you may remember from algebra word problems or from identifying the topic sentence in an English assignment follow the same principles: from the given information, determine what issues need to be addressed. It could be as simple as comparing current and prior-period financial results, or it could be forecasting revenue trends for the next five years. Both begin with establishing the problem statement.

There are many resources and books on critical thinking and how to establish a problem statement and critique it for fallacies. As you define and explore the topic of critical thinking, consider these sources:

Asking the Right Questions , ninth edition, by M. Neil Browne, Stuart M. Keeley
Critical Thinking , by Brooke Noel Moore, Richard Parker
Miniature Guide to Critical Thinking , by Richard Paul, Linda Elder
The Thinker's Guide to Analytic Thinking , by Linda Elder, Richard Paul

Foundation for Critical Thinking Offers free sample downloads of materials by Elder and Paul, the authors mentioned above.

UMUC also offers courses in philosophy that address critical thinking. Among them is PHIL 110: Practical Reasoning .

2. Examine the Available Data

The second step is to determine what data is pertinent and available. Following the example above, if the need is to compare current and prior-period financial statements within the same company, the process should be fairly straightforward: compare how each financial statement line changed from period to period and highlight any unusual results. However, if the task is to analyze a financial statement against industry performance, or another company within the same industry, that requires research into industry trends.

Trade Associations

The first research site would be an industry's trade association, such as the ones below. Each presents industry statistical information.

The Association of American Railroads

The National Association of Manufacturers

The Motion Picture Association of America

Research Firms

There are research firms that specialize in developing industry trends. While far from being an exhaustive list, you can think about using:

Macroeconomic Forecasts for Emerging Markets - Business Monitor Online

The Wall Street Journal

The federal government also provides some industry analysis:

Federal Deposit Insurance Corporation (FDIC) For the banking industry.

FCC Media Bureau Industry Analysis For the telecommunications and media industries.

U.S. Securities and Exchange Commission For Form 10-K business filings.

The Bureau of Economic Analysis For overall economics.

One readily available tool should be the financial ratios found in Intermediate Accounting. Ratios and Formulas in Customer Financial Analysis is a concise list of regularly used ratios.

American Institute of CPAs Resources offers a collection of information and reports relevant to industry and government.

3. Model Possible Results or Forecast Impacts

Step 3, modeling results or forecasting future performance, moves into the realm of economics, operations research, and statistics. The UMUC accounting major requires at least two economics courses and one statistics course. Additional work in operations research is a good option.

UMUC offers an extensive economics program; the following courses, beyond the courses required for your degree, could supplement your critical thinking skills:

ECON 422: Quantitative Economics

ECON 425: Mathematical Economics is another good course (you must have one semester of calculus)

Finance is another good area in which to learn modeling skills.

FINC 421: Financial Analysis (a course on analytical techniques)

As an accounting major, take the required courses as soon as possible, because they will help you in your accounting courses! Remember that the required statistics course is a prerequisite to your first required finance course:

STAT 230: Business Statistics

Operations Research

Operations research covers multiple processes to help make better decisions. The techniques can assist you in evaluating what mix of products to make, or how to determine what route a train should take to maximize speed, for instance.

Institute for Operations Research and the Management Sciences provides an overview of operations research techniques and uses.

Operations Research | What O.R. Is is another operations research site.

Forecasting

Forecasting—in particular revenue and expenses—is a combination of economic techniques. It requires the industry understanding described above, some knowledge of the organization's future performance, and the overall economic outlook. In all cases, forecasting is an art rather than a science. However, there are approaches that may provide some guidance:

The Fundamentals of Revenue Forecasting

How to Forecast Revenue and Growth

Qualitative Forecasting Methods and Techniques

Forecasting methods and formulas with Excel

Choosing the Right Forecasting Technique

4. Communicate and Explain the Analysis

The final step is explaining the analysis. As mentioned in the earlier component on the communications process, knowing your audience is the key to good communication. Here are a few thoughts on how to communicate and explain a critical thinking project:

Describe your interpretation of the problem. What factors did you use to analyze the problem? What background did you draw upon? Did you take a known approach or a new one?
Describe your assumptions and constraints. These can include business constraints, industry trends, or new business opportunities.
Describe your analysis, the steps you took, the models built, and the forecasts created.
Finally, using your analysis, provide your recommendations.

Remember that critical thinking is asking the right questions and following up with analysis and communication.

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IMAGES

Critical Thinking Definition, Skills, and Examples
10 Essential Critical Thinking Skills (And How to Improve Them
25 Critical Thinking Examples (2024)
(PDF) Critical Thinking in Professional Accounting Practice
Why Critical Thinking Is Important for Careers in Accounting
Critical Perspectives On Accounting

VIDEO

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Episode 131
5 Examples of Critical Thinking Skills (to Become a Pro Problem Solver)

COMMENTS

How to develop critical thinking skills in finance & accounting
Innovate: Develop an independent mind-set. Find ways to think outside the box and challenge the status quo. Make sure your decisions are well-thought out. A critical thinker is logical as well as creative. Learn: Keep an open and well-oiled mind. Brush-up on your problem-solving skills by doing brain-teasers or trying to solve problems backwards.
Critical thinking in accounting education: Status and call to action
Examples of accounting critical thinking research. After broadly reviewing the body of critical thinking research studies in accounting, we compiled a sample of 11 studies from 1997 to 2019. These studies are briefly summarized in Table 3. Our intent is not to criticize these studies, but rather to use these studies as illustrations for ...
PDF The Uses of Critical Thinking in Accounting and How It Improves
2. The case for critical thinking in accounting . In accounting, the use of critical thinking should not be underestimated. For most of the accounting studies, students generally just receive factual information, learn to systematically come to finding correct answers, and then pass examinations. (2013) stresses that Parham accounting
Top soft skills for accounting professionals
For example, if working within a team setting, use a shared spreadsheet with colleagues to track each person's responsibilities for month-end close or whatever project the team has prioritized. ... Critical thinking — analyzing problems and finding the causes and solutions to those problems — is a major facet of the accounting profession ...
A critical thinking competency framework for accounting students
Critical thinking is considered a vital skill in the twenty-first century workforce, yet it is still viewed as an under-developed skill in accounting students. This exploratory study set out to explore the critical thinking competencies required of accounting students. To achieve this, a qualitative research methodology was followed by firstly ...
Demonstrating critical thinking in accounting: applying a competency
Supporting students to demonstrate critical thinking skills while studying accounting is challenging. Researching how to do this is made more difficult because '[t]here is no single, agreed-upon definition of critical thinking within accounting education … ' [Wolcott, S. K., & Sargent, M. J. 2021.
Improving Critical Thinking Skills
Critical thinking is needed to evaluate complex situations and arrive at logical, sometimes creative, answers to questions. Informed judgments incorporating the ever-increasing amount of data available are essential for decision making and strategic planning. Thus, creatively thinking about problems is a core competency for accounting and ...
PDF The Application of Critical Thinking in Accounting Education:
There are six important critical thinking skills delivered by Facione (1990) namely; (1) Interpretation, (2) Analysis, (3) Evaluation, (4) Inference, (5) Explanation and (6) Self-Regulation. The study which analysed critical thinking for purposes of educational assessment and instruction further highlighted sub-skills under each skill which are ...
PDF Critical Thinking in Professional Accounting Practice: Conceptions of
concept of critical thinking itself, regarded as a cognitive ability. Defining critical thinking—an academic exercise? There is still considerable uncertainty as to the precise nature of critical thinking, both in the literature on accounting education and further afield, for example, in the various literatures of education and psychology. Indeed
Critical thinking in accounting education: Status and call to action
Cognitive models and critical thinking. This section of the paper provides an overview of the most common types of models/theories that are used in accounting research to study the development of critical thinking skills. In this section, we draw examples from the accounting research studies as well as the broader education literature.
Critical Thinking in Professional Accounting Practice: Conceptions of
Although practical obstacles, such as content-focused curricula, have emerged to the inclusion of critical thinking as a learning objective in tertiary-level accounting courses, the presence of these obstacles has not altered "the collective conclusion from the accounting profession that critical thinking skills are a prerequisite for a ...
The Accounting Skills You Need For A Successful Career
To succeed as an accountant, you need strong critical thinking skills. Ethical dilemmas, reporting errors and unbalanced spreadsheets require careful thought and investigation to arrive at the ...
Critical thinking in accounting education: processes, skills and
Critical thinking in accounting education: processes, skills and applications - Author: Alan Reinstein, Mohamed E. Bayou Explains that many prestigious bodies, including the American Assembly of Collegiate Schools of Business and the Accounting Change Commission, have asked accounting educators to improve their students' critical thinking skills.
PDF How to help your students become better critical thinkers
aware of the increasing calls for critical thinking in accounting programs. These calls are caused partly by the importance of critical thinking for all college graduates. For example, employers have listed "Critical Thinking/Problem Solving" as the most important competency for career readiness.1 Yet, employers on
Enhancing Critical Thinking Abilities in Accounting Education
Abstract. This project aims to improve accounting education by incorporating and encouraging critical thinking skills and best practices. Accountants must have excellent thinking abilities to ...
41+ Critical Thinking Examples (Definition + Practices)
There are many resources to help you determine if information sources are factual or not. 7. Socratic Questioning. This way of thinking is called the Socrates Method, named after an old-time thinker from Greece. It's about asking lots of questions to understand a topic.
Critical Thinking for Accounting and Finance
Critical Thinking for Accounting and Finance. No skill is more important in business today than the ability to understand, analyze, and act on information effectively and responsibly. Finance and Accounting professionals who are also savvy, sharp critical thinkers can cut through ambiguity and information overload to quickly zero in on what is ...
Improving the Critical Thinking Skills of Accounting Students
The results from the study indicate that, based on lecturers' reflection, students are pushed to think in depth in classes using the inquiry based learning of the FBT approach. This is supported by students' feedback on their own critical thinking ability. Thus, the FBT approach improves the critical thinking skills among accounting students.
Why Critical Thinking Is Important for Careers in Accounting
A critical thinker gathers new information that can be used to analyze and inform unique strategies to address an issue at hand. Critical thinkers are open-minded and accepting of unconventional approaches, rather than developing attachments to traditional schools of thought. The work of those with careers in accounting increasingly takes place ...
(PDF) A Systematic Literature Review on Critical Thinking in an
Critical thinking is a function of quality hard work, homework and peer interaction in the accounting discipline. (Thompson & Washington 2015). There is evidence that accountancy students may be ...
25 Critical Thinking Examples (2024)
25 Critical Thinking Examples. Critical thinking is the ability to analyze information and make reasoned decisions. It involves suspended judgment, open-mindedness, and clarity of thought. It involves considering different viewpoints and weighing evidence carefully. It is essential for solving complex problems and making good decisions.
Accounting Toolbox
Critical thinking requires the following four steps: determine the problem. examine the available data. model possible results or forecast impacts. communicate and explain the analysis. The skills needed often reach beyond traditional accounting into economics, operations research, and statistics. 1. Determine the Problem.
Accountancy Skills: Definition, Examples and How to Improve
They include data analysis, mathematics and an understanding of generally accepted accounting principles. Soft or interpersonal skills are personal traits and habits that determine how accountants work alone and with others. They include communication skills, problem-solving and critical thinking.