0
In the business world, accounting is one discipline of study that all people, regardless of job position, should have some knowledge of. Its concepts can be applied to all job specialties, its importance has been promoted in recent years, and it is useful in people's everyday lives.
First, an accounting education is important because it can be applied in all job specialties. Secretaries must use accounting skills to manage the company check book and orders, auditors have to study financial statements to evaluate the accuracy and integrity of the business, and executives need to judge the success of their business using accounting statements from the past and present. These are just a few of the many possible positions where an understanding of accounting is necessary.
Another reason all business students should have some background in accounting is because in recent years, people in the business world have been held more accountable for their financial practices. Since the Enron and WorldCom crisis when independent auditor Arthur Anderson failed to report illegal accounting practices, the SEC has been monitoring public corporations more closely. Thus, companies require some basic knowledge of accounting to avoid any future misstatements unintentionally occurring.
Additionally, it is vital that everyone, not just business students, acquire an understanding of accounting for personal benefit. People use accounting in their daily lives when they study financial statements to make investment decisions, assess interest rates to pay off their house mortgages, and calculate rates for car payments. In the business world, accounting is utilized in much greater depth, but each individual encounters some activities in his/her everyday life that requires knowledge of accounting principles. Accounting is the most basic framework of business. Without an accounting education, students would be unprepared for the real world
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What are advantages and disadvantages of branch accounting?
advantages of branch accounting
Why do organizations need management accounting?
Organizations need management accounting so that managers can know how their departments are performing. Without managerial accounting, managers will be operating in the dark.
Explain the Scope of Management Accounting?
Management accounting helps managers determine where their departments can be improved. Accounting reports help managers know what weaknesses exist in their processes.
Which of these represent skills that managers need?
what skills do managers need
Function of management accounting?
Management accounting helps managers balance their budgets. Management accounting also helps managers know when their products are underperforming, so that they can make adjustments.
What are Advantages of accounting for price level changes?
advantages of price level accounting
How does an accounting fraud occur?
Managers must look for accountants placing money in accounts it don't belong in. To detect it, managers must be educated about accounting processes.
What is management accounting information used for?
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, ...
What are advantages and disadvantage of harmonisation of international accounting standards?
what are advantages and disadvantages of harmonisation of accounting standards
Managerial accounting is what type of accounting?
Managerial accounting is a type of accounting which is concerned with providing information to managers that is, people inside an organization who direct and control its operation.
What are roles of accounting in business?
the simplest answer to this question is that accounting provides information for managers to use in operating the business.
The area of accounting that provides managers of an organization with information they need to make decisions is called?
managerial accounting
