This study examines student readiness for an upper division finance course by examining performance on topics that form the prerequisite knowledge. The data consist of assessment results from a multiple-choice questionnaire given to students at the beginning of the course. Regression variables include test results, location of prerequisite course, and months lapsed since completion of prerequisite course. The prerequisite locations are traceable to three institutions and include one four-year institution and two, two-year institutions. Overall mean student performance is low: 3.93/6.00, 65.5%, native students outperform transfer students by an average of 10%. For the total sample, time lapse is not significant, but interactive terms are negative and significant for students at two-year institutions indicating the possibility of a “forgetting variable.” A case is made for identifying gaps and improving student readiness for all upper division finance course work requiring prerequisite knowledge.