Chapter 1
After reading the first paragraph
in chapter 1 I was filled with intrigue. The question of what accounting actually
is drew me in and started to entice me to continue reading. Having previous
experience in Quality Assurance and Accounts and knowing that this is the
direction I want my career to go in, identifying exactly what accounting is
made me feel excited and eager to continue with this reading. A few more
paragraphs in and I began to feel that a lot of things were starting to make
sense. The comment about accounting being more like a business model rather than
just an activity really began to hit home and ring true.
Continue a little further and all
of a sudden I began to get a little frustrated. It appeared that after every
defining moment, the next sentence started to change the view on what was just
said. For example in one sentence the author states that accounting is about
understanding the realities of business, the next sentence he then goes on to
change his mind and questions what he just stated ie ”Or is it”. This occurred a
few times throughout the reading which became very annoying, I much rather he
chose a side and stuck to it.
In saying that I felt that most of
the examples used to illustrate his point of view were of a high quality which
enabled me to gain a good grasping of some of the key concepts and terms
however I feel that at times the author went on and on a little too much. I don’t
need to be told about the 100 shops that are located down the main street of Yeppoon
or how the keyboard works and was invented or even need to know that he enjoyed
playing musical instruments.
The definition of double entry book
keeping seemed to lack a little body for my linking. I would have preferred a
clearer definition rather than focussing on various publications and telling me
all about the Father of Accounting. I mean is this something I really need to
know?
As I am an individual who wishes to
become involved in book keeping as soon as possible I really enjoyed the topic
of book keeping without books. Understanding that networking with bigger firms
as a means of ensuring all of the clients needs are met and also ensuring your
work is confirmed as being true and correct was really insightful.
Overall I felt defining the
relationships between what is accounting, the accounting equation, book
keeping, the five elements of accounting and measures of view, changes in value
and revenue and expenses was quite practical and to the point. It is this type
of presentation of information that I enjoy and wish there was more of.
Chapter 3
After reading chapter 1 and
believing there was a lot of unnecessary elements I was a little apprehensive
about reading chapter 3. This was of course before I saw the subject title.
Once I started to read chapter 3 “Introducing financial statements”, it began
with a fantastic definition about how being introduced to financial statement
was sort of like meeting two people for the first time. I was able to relate to
this which changed my entire mindset. I felt relief come over me. This was a
great way to understand this key concept. It was clear, precise and expressed
by using real life examples.
Continue reading and it doesn’t
take long before the gobbligook creeps back in; “Parent Companies”, what is
this all about? Then after the author attempts to explain this to us he
proceeds to inform us that we do not need to worry about this now. This just
frustrates me once again. My feelings are if we do not need to worry about it
then why put it in. This only sets out to confuse me. Once over this initial
confusion we are again presented with insightful valuable information with
recognisable and valuable information which begins to calm me down.
Then we come to ratios. While I do
understand this subject matter, do I really need to know who Euclid or Sir
Thomas Little Heath or Alexander Wall is? And why does there need to be a lot
of debate among practitioners with regards to the usefulness of financial statements
analysis in order to examine profitability, long-term and short term solvency? How
is it that we are able to come up with a set curriculum to educate our children
but when it comes to predicting the future economic and business outcomes of a
business we are all up in the air about how to achieve it? If Warren Buffet,
Benjamin Graham and David Dodd are able to make sense of things and get rich
from it then why can we not agree to use the same process. It worked for them.
In conclusion after reading this
chapter I get the sense that we procrastinate too much and worry more about the
why we do things rather than accepting that if it works successful, then we
should just use it.
