Jenevieve Limqueco

C34

All about Numbers

Thesis Statement: Accounting is very important to all of us.

Outline: I. Introduction A. Recall of the past II. Body A. Definition of accounting 1. Origin 2. Concept B. Purpose of accounting C. Uses of accounting D. Importance of accounting III. Conclusion A. Summary B. Restatement of thesis statement

All about Numbers

The two hardest things to handle in life are failure and success. Anonymous. When I was a kid, I wished to be a doctor someday. But as I grew up, I realized that to be a doctor, it would consume my whole life in studying. As I took my third year in high school, I started to think of the course that I will take in college. I imagined myself in every profession that interests me, but as I imagine myself being in a profession, I could see the negative things that will hinder me from finishing the course or hinder me from being a successful person in that kind of profession. Then one day, I imagined myself as an accountant. It fitted perfectly for me, because I love Math so much, I like to analyze things, and I dont have a course left to take which interest me. These are the reasons why I took accounting as my course for college. People say that accounting is one of the hardest courses, but without accounting a business wouldnt succeed. Accounting has many definitions. One of the definition is it is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions, in making reasoned choices among alternative courses of action (Chalmers, Fyfe, Kieso, Kimmel, Mitrione & Weygandt, 201). Another is that it is the 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 financial character and interpreting the results thereof (Valenzuela, n.d.). Accounting developed as a result of the information needs of merchants in the city-states of Italy during the 1400s. Luca Pacioli published the first known description of double-entry bookkeeping entitled Summa de Arithmetica, Geometria, Proportioni et Proportionalite (Everything about Arithmetic, Geometry, and Proportion) published in Venice in November 1494. This book contained primarily principles of mathematics and incidentally a set of accounting procedures.

Accounting has its purposes in every organization, and one of the purposes is to prepare financial statements to provide quantitative, financial information about economic entities to internal and external users so that they could make informed judgment and better decision. The three main financial statements are The Income Statement, The Statement of Changes in Owners Equity, and The Statement of Financial Position. Another purpose is to identify and record all the activities that the organization made financially. All activities, including purchases, sales, expenses, investments, and many more. Another is to keep track of debits and credits in the business. Furthermore, accounting has uses in every business. First is to measure the activities of the business through the financial statements. These financial statements help us convey if the business is earning or losing money. Another is to process the information given by financial statements into reports essential for decision making. These reports provide the decision makers valuable information, so that they can make plans for the future performance of the business. Accounting is very important because it is the language of business. It is called the language of business because accountants make financial records which inform the owner and other parties who are interested in the business if the business is successful in the past and in the present. This will help the owner predict a future performance of the company. Without an accountant, an individual running a business could not keep up with the things around him/her due to the fact that he/she doesnt know the financial status of his/her business because he/she doesnt know how accounting is being done. Knowing the status of his/her company in every single area will allow him/her to improve the companys performance and develop strategies for a successful operation.

An accounting degree is not easy to earn. My parents and relatives say that accounting is one of the hardest courses, because we need to analyze everything properly before doing the next step. And to be a successful accountant in the future, we should be prepared for many years of hard work, many hours of studying the lessons, and patience in studying and analyzing the transactions. It takes a lot of hard work to be an accountant, but a good accountant can earn rewards and personal satisfaction. Disciplining yourself to do what you know is right and importance, although difficult, is the highroad to pride, self-esteem, and personal satisfaction. Margaret Thatcher

Bibliography: 1) Accountancy. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Accountancy 2) Chalmers, K., Fyfe, M., Kieso, D., Kimmel, P., Mitrione, L., & Weygandt, J. (2010). Principles of Financial Accounting (2nd edition). Queensland 4064, Australia: John Wiley & Sons Australia, Ltd. 3) Valenzuela, M. (n.d.). Actbas 1 Downloaded Lecture Notes. Retrieved from http://scribd.com/doc/56606263/Actbas-1-Downloaded-LectureNotes?in_collection=3165310