ABSTRACT:

This paper identifies two levels of electronic spreadsheet software (ESS) as subsets to decision support systems (DSS) with the advanced level ESS distinguished by its probabilistic simulation capability. The expected benefits of advanced ESS usage and characteristics common to most advanced financial planning languages are described. The risk modeling functions, Monte Carlo commands, and statistical output of a widely adopted advanced ESS, the Interactive Financial Planning System (IFPS), are demonstrated in a cash flow model. The use of advanced ESS in accounting courses is a necessary and natural extension from the current uses of deterministic electronic spreadsheet software.