In today’s tumultuous economy, the scope and complexity of financial transactions
frequently change. At the core of understanding these different transactions is accounting, which
serves to record an organization’s financial history. All business students should possess some
form of accounting education because accounting introduces the financial aspects of business,
teaches stewardship in these financial activities, and facilitates the decision making process
related to business.
Businesses enter into a variety of transactions throughout a financial period. From
receiving inventory to paying dividends, the financial history of an organization must be properly
documented. Accounting education helps students understand financial activities by presenting
the fundamentals of recording, summarizing, and reporting the financial transactions of a
business. Learning the fundamentals of accounting aids students in their comprehension of an
organization’s financial activities and history.
Vital to business survival is the concept of financial stewardship, the control over an
organization’s financial activity. Accounting education introduces the double entry system for
controlling financial transactions. The unique double entry system provides relative financial
objectivity and integrity, allowing a business to control and check the accuracy of its finances.
The principle of stewardship is necessary for preserving control over the accounting process.
Once a student understands accounting preparation and control, accounting education
teaches how to interpret information from the financial statements. From loaning money to
choosing investments, an understanding of financial statements allows a business to make
choices based on the financial history reported by accounting.
Accounting education teaches the essentials of financial transactions, stewardship, and
decision making that assists professionals in their understanding of the business world.