A frequent criticism of accounting students by employers is their lack of unders

Question

A frequent criticism of accounting students by employers is their lack of understanding of basic documents, records and schedules. The ILA for this course is intended to give students some practical expereience to help overcome students' lack of knowledge about basic business systems. During weeks one and two we reviewed the materials included in the System Understanding Aid and used for completing the course project. You'll find journals, ledgers, worksheets, receiving reports, sales invoices, bill of landings, deposit slips and more. Why do you believe the knowledge of documents and records and their realtionship to financial statements is essentail for the study of accounting systems?

Explanation / Answer

Accounting principles are not like physical laws; they do not exist in nature waiting to be discovered. Rather, they are developed by people, in light of what we consider to be the most important objectives of financial reporting. In many ways accounting principles are similar to the rules established for an organized sport, such as baseball or basketball. For example, accounting principles, like sports rules:

So knowledge of documents and records and their realtionship to financial statements is essentail for the study of accounting systems.The FASB is authorized to issue Statements of Financial Accounting Standards (and other authoritative accounting pronouncements), which represent official expressions of generally accepted accounting principles.

financial statements issued by management provide a complete and reliable picture of the company

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