My reflections and KCQs on Chapter 1
- The first question we are
asked when reading the study guide is 'what is accounting?' To me,
accounting is not only recording the transactions of a business, but
really understanding the information and being able to use that
information to the benefit of stakeholders.
- I agree with the study guide
stating that business is a wonderful world to work and live in. The idea
of working in business is very appealing to me, which is why I am
embarking on a university degree to help fulfill this!
- I find the idea of comparing
business relationships with personal ones very relevant. I know myself if
I have a bad experience with a business I would be less inclined to give
them my custom again- their value in my eyes will decrease dramatically,
and I guess the same could be said for a business that is on the receiving
end of a bad business transaction. With a competitive market, would you
want to give your hard earned money to someone distrustful? No, just like
you wouldn't want to do business with a dodgy company.
- Something I found interesting
in chapter 1 was the number of listed companies with a director that has
an accounting background. It really opens my eyes to what is possible with
an accounting degree. It seems like accounting could take you as far as
you let it.
- Accounting is so diverse- no
matter what product or service a business offers, there is always a need
for book keeping and some form of accounting.
- I am astounded by the fact
that double-entry accounting has been around for well over 500 years.
- The thing I discovered in
this chapter was the confidence in myself that I might be grasping the
concepts laid out. Many times I would read a paragraph, reflect on it,
only to read on and see something rather similar to what I had just noted
myself!
My KCQs on Chapter 3
- · Not actually accounting-related, but I did find the example sequence for chapter 3 amusing as my name is Sarah and I am married to a Chris!
- · I noticed in regards to firms calling their financial statements different names, that none of my company’s reports were called anything like I was used to, and I did just look at the actual document to work out which was which.
- · I also find it interesting that countries have different financial years- would it not be easier to have the one universal date for a financial year? Does this impact on financial trade?
- · I enjoy reading the background information on Ryman Healthcare. It is more interesting to read figures and info when there are a few anecdotes or interesting bits in there.
- · A question I have is can a firm choose their best performing day of a period for their balance sheet? Wouldn’t this be misleading? Would there be consequences for doing this?
- · Once a firm has chosen the date of their balance sheet, does this date need to remain the same? Would it still be an accurate portrayal if the two days are at different parts of the year?
- · I find that income statements are much more practical, as it shows a whole period rather than one snapshot in time.
- · If a company has no requirement to disclose expenses, how can people get an accurate portrayal of the business’s financials?
- · I agree that cash is king… Like you said in the study guide, you can’t pay employees in chairs! With no cash, you cannot pay anyone, you can’t get new stock, you can’t retain employees. There is really no point to operating, and essentially you couldn’t operate in that position.
- · I understand now why we debit- because of the obligation to the owners. I was always wondering why we would debit cash when we receive it, but now it makes sense.
- · I think it tells a lot that the second most translated and circulated book (Elements) is one about maths. To me, that just shows how important and used mathematics is in the real world.
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