The objective of this study is to perform an empirical investigation of the influence of prerequisite grades on the academic performance of students studying Principles of Financial Accounting (II). This study attempts to provide comparative evidence for the harmonization of international accounting education. Correlation and linear regression analyses using a sample of 147 students who were enrolled in four sections of a Principles of Financial Accounting (II) course at the College of Business Studies in Kuwait during the 2012/2013 academic year were used to test the study’s hypotheses. The results indicate that there was a statistically significant and positive relationship between prerequisite grades and students’ performance which explained the influence of prerequisite grades on students’ performance. The study concludes by considering the implications of these findings for the administration team of the College of Business Studies, for similar institutions, and for instructors, and suggests avenues for future research.