Accounting is not just the gathering and reporting of a financial history of an institution, it is also an explanation of a company’s past financial activities. Its procedures also safeguard against corruption and scandal. Due to these factors, all business students should have some accounting education to improve business and investing decisions and to prevent scandals. Accounting improves business decisions by reporting past financial history. A manager can examine his competitor’s cash flow and income statements to determine the amount of inventory and cash available. With this information, he can refine his business strategy to gain a competitive advantage. The human resources department uses financial reports to measure the performance of the CEO to calculate a bonus. Salespeople can gain a comparative advantage by understanding the strengths and weaknesses of their own firm or their competition. It is also important, as upper management, to keep the company financially secure and prevent scandal and corruption. With the recent Enron and WorldCom scandals, accounting has become more important than ever in preventing against scandals. It is upper management’s responsibility to the stockholders to ensure the validity of financial reports. These recent events have increased the standards of accounting practices; thus, it is to a business student’s advantage to understand accounting. This knowledge could be the reason for promotion. On a more personal level, an investor might use accounting to make investing decisions. Investors can use the balance sheet to divide total current assets by total current liabilities, thus, creating the current ratio. They can then use this ratio to evaluate a company’s ability to meet near term commitments. Investors can also use the income statement to find out net income to determine the current success of the company. Accounting information, therefore, provides a considerable advantage to people who understand financial reports. Consequently, it is important for all business students to understand some accounting.