3.8: Why It Matters- Accounting Theory
Why learn about accounting?
Accounting is often called the language of business, and knowing the language is absolutely essential for any business person. You may have already been in a meeting with a customer, or the sales staff, or even the management of your company, where you heard accounting terms like “bottom line” and “gross profit.” In a sense, accounting is more than just a language. It’s also a way to keep score and to measure progress and accomplishment. Even more simply, things like a sales commission are directly based on accounting information.
Accounting terms and concepts pervade business, so learning the language, not just the words but the meanings, is essential for success. In this module you’ll delve into history, ethical dilemmas, and the legal implications of accounting, along with some of the essential nuts and bolts of accounting for business transactions. All this will give you a working knowledge of the venerable and ancient art of accounting—the language and the scorecard of business.