ACCOUNTING: Its Impact and Significance towards BSBA Students in JRU

A Library Paper

Submitted To:

Maria Cenita P. Dapito, Ed. D

Professor

In partial fulfillment of the requirements in English 12

Submitted By:

Group 4
Balmores, Alyza Mae (member) Fajilan, Emmanuel Christian S. (member) Gonzales, Molin E. (member) Kierulf, Rodolfo G., Jr. (member) Ramirez, Marivic M. (member) Ronato, Rochelle Ann P. (secretary) Varlez, Kenneth Martin M. (chairman) Victorino, Yna Marie B. (member)

Second Semester 2011-2012

Table of Contents

CHAPTER 1: 1.1 1.2

Introduction Background of the Study Statement of the Problem

CHAPTER 2:

Body of the Research

CHAPTER 3: Recommendations

Summary

of

Findings,

Conclusions,

and

3.1 Findings 3.2 Conclusions 3.3 Recommendations

CHAPTER 4:

Bibliography

4.1 Book Reference

4.2 Website Sources

CHAPTER 1: Introduction
1.1 Background of the Study

Accounting came about because of mans need to keep records intact for his business transactions. People in all civilizations have maintained various types of records of business activities. The oldest known are clay tablet records of payments of wages in Babylonia around 3600 B.C. There are numerous evidences of record keeping and systems of accounting control in ancient Egypt and in the Greek cities. The earliest known English records were compiled at the direction of William the Conqueror in the 11th century to ascertain the financial resources of the kingdom. In 15th century, some merchants in the Italian cities kept books of accounts in order to keep track of what they owned (asset) and what they owed (liabilities), and how much they made from each business undertaking. Luca Pacioli a Franciscan friar, in his book Summa de Arithmetica, Geometria, Proportioni, et Proportionalita (everything about Arithmetic, Geometry, and Proportion) published in Venice, November 1494 described the double entry bookkeeping method used then by merchants. He noted that accountants as of the time were already using money as the common denominator in recording transactions, but that they did not have a clear

concept of periods as they recorded on a continuous basis. Profits were calculated only at the end of the ventures. Records were kept of details such as the names of the people involved, the nature of the transaction, the terms of payment and the kind of conversion, values of currencies used. Some records were used as a basis for reporting on ventures where silent partners provided the capital and active partners the business know-how. Trust relationships like stewardship and agencies were accounted for by using charge for the estate and discharge for the disposition of the estate. The terms debtors and creditors were used. In Latin known as debit (owes) and credit (trust). Goethe, the German Post, novelist, scientist and universal genius, wrote also about double entry as follows: It is one of the most beautiful inventions of the human spirit, and every good businessman should use it in his economic undertakings. Double entry provides for recording both aspects of transaction in such manner as to establish equilibrium. Since 1494, the basic elements of double entry system have continued virtually unchanged. The term accounting has been variously defined by different authors. Some typical definitions are: Accounting may be defined as an art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character, and interpreting the results thereof (Terminology of American Institute of CPA), Accounting is often described as the language of business, it is the medium of communication between a business firm and the various parties interested in its financial activities, and Accounting is a service activity whose purpose is to provide quantitative information, primarily

financial in nature, about economic entities that are intended to be useful in making economic decisions (Formulated by Philippine Institute of CPA). From the foregoing, accounting may then be defined briefly as both the science and an art that treats the recording, compilation, analysis and interpretation of financial or business transactions in a systematic and comprehensive manner for the purpose of effective management and administrative control. Accounting is used both directly by owners, managers, creditors, suppliers, taxing authorities, employees and customers, and indirectly by labor unions, financial analysts, stock exchanges, lawyers, regulatory authorities, financial press and trade association. A person engages in business to earn profits and thus provide him with a means of livelihood. In order to accomplish this objective, it is necessary for him to know from time to time the profits earned or the losses sustained by his business. Ordinarily, the primary aim of any business enterprise is profit. One who engages in business naturally expects to make gain although that may not necessarily be the outcome, for it is possible that instead of realizing a profit, the business may suffer a loss. A person must also know the value of things owned by the business and the amount of its debits at a certain date. This information will enable him to determine the soundness of its financial position. To provide the owner or owners of the business with statements containing this information is the principal purpose of accounting.

1.2

Statement of the Problem

Specifically, this library paper seeks to answer the following sub-problems: 1.2.1 Why is there a need to study accounting? 1.2.2 What are the factors affecting the students performance in studying accounting? 1.2.3 Does accounting also affect the students lifestyle? Why? 1.2.4 What are the ways that the students should do to make accounting easier to understand? 1.2.5 How do students apply accounting in their daily lives?

CHAPTER 2:
Body of the Research

Accounting, as what was discussed in the introduction, is the language of business, and is needed now more than ever before. It is the backbone of all businesses and therefore is a very broad subject. College students majoring in business administration are required to take accounting for them to be ready for their future careers. According to what we have researched, there are a lot of reasons why students need to study accounting. One reason is for the students to be financially literate. As because they are business administration students they need to know a lot about the

financial activities and transactions of a business. It is necessary for them for when they are in the actual field, they will be able to use what they have learned and apply it depending on the situation they had. They also said that having knowledge about accounting will be useful not only for the academics but also for the planning of their financial needs. Another reason is the career opportunities associated with a degree in accounting which is practically endless due to how broad the subject is. Some students said that after graduating with a business course and having a background of accounting, job hunting would not be that difficult for them to find. They even said that the jobs are the one hunting them. Also due to the economic condition that were facing nowadays, a lot of students took up business related courses especially with accounting as their majors, not only for the many opportunities they will have after graduating but also because of practical reasons, higher salary and if probable, they may make use of what they have learned and apply it when they build their own businesses to have more income. Studying accounting is not easy as many students say. Some say its mindwrecking that even though you have studied and reviewed all the discussion it is still so confusing. There are also factors that contribute to the difficulties of the students in studying accounting and have affected their performance and even their lifestyle. Data were gathered and one common factor is the students attitude towards accounting. Some students have this scare factor when it comes to accounting, especially when theyre having a quiz or examination, just merely seeing those long, not-from-here problems and theoretical questions with out-of-this-world terms they feel like theyre going to have a high fever and get chills because of nervousness and anxiety. By this, students become uneasy and insecure. Also by having these

experiences, students tend to find the lessons boring and eventually they dont feel like going to class because of their lack of interest in the subject and making reasons that it is not that necessary for them to learn the subject matter. Another factor that affects their performance is their time to study. In accounting, there is a need to exert more time and effort in studying and practicing problems in order to understand it deeply. Most students are having some difficulty in managing their priorities and not knowing what to prioritize first. For instance, students having major subjects especially accounting, which demands more of their time, have a hard time balancing and managing their time and effort for their major and minor subjects. By this, students feel pressured and anxious just to be able to do and finish their assignments, projects and the like, and to be able to study all the things they need to review for quizzes and exams, and thus affecting their performance. Students having this kind of predicament tend to stress themselves, making them looking haggard and lack of sleep. Also there are students that dont feel any of these pressures because they are more focused in building their social lives than to study. They prefer to mingle with their friends first, go to parties, and have happy times without paying even the slightest attention to review or even scan their notes. Things like this really happen nowadays, they say that they are being influenced by their peers; some say they just dont feel like studying at all. There are some ways to make accounting easier to understand and might be enjoyable for the students to study. Students majoring in accounting said that in order for them to understand this subject in the easiest way is to read, read, and read, and also practice solving example problems. Reading fundamental theories over and over again makes one unclear thought clear and then students will find that all practical problems are based on it and solving them will become enjoyable. Also,

reviewing after the discussions and practicing what they have learned helped in making accounting easy and simple. Reading other reference books also helps in broadening students knowledge about accounting. Accounting need students concentration and focus, time and effort for them to be able to be successful in this field and/or for them to effectively use what they have learned. There are many good reasons why studying accounting is necessary, there are also factors that might test their capabilities and even affect their performance and lifestyle. Accounting is not that easy to pursue; it is not all so good because before you achieve all the knowledge and opportunities, students should strive first and study hard, like every courses are. Accounting is useful in our daily lives. Studying it might be a pain but after all the hardships, in the end it is all worth it. As a lot of students said that applying accounting in their daily lives, able them to budget their allowance well, also they have become more careful in handling and spending their money, and by that they were able to save some for their future use. Other say that being able to study accounting and been exposed in financial activities, students became more meticulous when it comes to their finances, be it at school, work or even at their own home.

CHAPTER 3:
Summary of Findings, Conclusions and Recommendations

3.1 Findings
This research showed us the importance of accounting towards the students who were taking up business courses. It exposed us to the factors that deeply affect the students performance in studying accounting. It has helped us on how to make accounting easier to understand. Also, this research equipped us with the right knowledge about what accounting really is and how useful it can be in our daily lives.

3.2 Conclusions
Being able to research and know these things, we researchers conclude that accounting is really necessary for us students who were in the business courses, to study and be knowledgeable about this subject. As we all now know that accounting is used widely in the financial world, it is the backbone of all businesses, and for us to be successful in our careers, we need accounting. We students may face difficulties, but if concentration, focus and the determination are there we can become successful in our fields.

3.3 Recommendations
As a college student still searching for a major it would seem wise to pursue a degree in accounting. The opportunities that this degree can provide for you may be endless. You may find yourself working for a large accounting firm or even owning your own private, small scale CPA Firm. You may also become a CEO or a CFO of just about any company being that accounting is the backbone of business. It is safe to say you can't go wrong with a degree in accounting.

CHAPTER 4:

Bibliography

4.1 Book References:

Basic Accounting Theory and Practices By: Ma. Luisa Witty Ramirez-Reyes Basic Accounting Made Easy By: Win Ballada, CPA, MBA & Susan Ballada, CPA

4.2 Website Sources: http://www.articlesbase.com/careers-articles/why-study-accounting809688.html http://www.moneyinstructor.com/art/needaccounting.asp http://www.investopedia.com/university/accounting/default.asp#axzz1lf2uUDS 6