Financial Accounting Reflection Paper

Topics: Balance sheet, Generally Accepted Accounting Principles, Income statement Pages: 2 (904 words) Published: November 2, 2014

Week Two ACC 300 Reflection Paper
Financial accounting is an important factor in any business; large or small. If you don’t know your numbers, you don’t know the financial health of your business. Over my twenty-three year career as a banker, I’ve always been the end user of financial information. Analyzing the statements for specific information is common on my part, and I find myself comfortable interpreting what the statements are saying. My accounting experience does include intermediate, and managerial accounting, but those lessons were soon forgotten because I do not prepare financial statements. Therefore, I find the most difficult learning task is keeping the journals and ledgers that feed into the final product. Accounting to me is challenge as a whole; it is a good subject to learn because accounting knowledge is always in demand. So far, I am on a good path learning the basics of accounting. I’ve learned how accounting affects business and how it allows organizations to identify cash inflows and outflows. Without accounting there is no way to accurately predict cash flows, or future operations. One of the most important I learned is to remember in account is the accounting equation. “The accounting equation is the basis upon which the double entry accounting system is constructed. The accounting equation is: Assets = Liabilities + Shareholders' Equity The assets in the accounting equation are the resources that a company has available for its use, such as cash, accounts receivable, fixed assets, and inventory.” (Merritt, C) I can appreciate the importance of a financial statement knowing that it is a valuable tool for businesses, as it provides the financial information that investors and creditors use to determine a company’s financial performance. I also learned that financial statements vary, and focus on different areas of an organization financial performances. I look forward to learning more in this class, and I hope to absorb as much...

References: Merritt, C. “What is the role of the accounting equation” retrieved from http://yourbusiness.azcentral.com/role-accounting-equation-analysis-business-transactions-12632.html
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