ACC 100 Accounting I Week 1 Discussion 1

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“Business Formation” Please respond to the following.

  • Explain the major advantages and disadvantages of a business owner with minimal accounting experience maintaining the company’s books instead of hiring an accountant. Discuss the major impact to the users of accounting statements if the statements are prepared in error. Provide support for your position.

NOTE FROM THE PROFESSOR:

This class starts off with a pretty broad question regarding this course but I am interested in your individual strategies and will tailor my teaching efforts to meet your needs and aspirations.

One thing I know for certain is that  business owners and managers would benefit from even a slight amount of additional accounting knowledge.  Too many businesses succeed for a while, sometimes a long while, in spite of management.  Additional knowledge would only enhance prospects for profitability and a long life.

The readers of financial statements will be either potential lenders or investors.  So, the real purpose of them is to convince individuals to invest or loan money to the business.  Please keep that in mind.

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