Similar to Melmrry, I found something that works for me. It came to me after around 5 hours studying the material and doing questions.The great thing is if you figure it out here (Wiley has this lesson early in the content) you also master topics like Indrect Method for Statement of Cash flows.
I should admit the “understanding” this as a strategy has never worked for me – I opted for a mnemonic and formula-based approach that I can write down during the exam to help solve problems.
You only need to remember one mnemonic:
C-Alifornia Apple goes down (-) the Ladder
Interpretation: for NET INCOME AND REVENUE QUESTIONS:
Cash to Accrual (C-Alifornia), formula = add change in Assets (Apple) minus (goes down) liablities (Ladder) or —-> +Assets-Liabilites
Then you can just modify it for every other type of question:
For Accrual to Cash on the same type of question (NI and Revenue), just flip the signs (-Assets+Liabilities)
For EXPENSE QUESTIONS
Instead of switching the signs, switch the formulas between Cash to Accrual and Accrual to Cash:
Cash to Accrual: -Assets+Liabilites
Accrual to Cash: +Assets-Liabilities
This works for every problem I've tried so far, including ones where Wiley encourages T-accounts.