Why Study Accounting

Professor Norm (at Brigham Young University) has explained in very simple words about the reasons of study accounting. Accounting is not only education for businessman. It is also the education for common man who wants to live his life with financially independence. A common man takes lot of decisions in his life, all these decisions can be taken better way, if he knows accounting and its information. These accounting information are very helpful for great decisions. 

Prof. explains his lecture by a simple examples.

1. A person goes to market for buying a car. But his friend tells him that he saved his money by getting car on lease instead buying own car. That person could not understand why car on lease is better than buying own car. But after his accounting information, he made to understand him, how can he saved money through car on lease. Without learning accounting, it will be doubtful.

2. Like this, if you want to buy a new home but you do not have enough money in your pocket but you know accounting, you will easily make your balance sheet in which you can see that your financial position is very sound. You have lots of fixed assets like your old home, jewellery, vehicles and other properties. You can easily get loan on mortgage.

3. You are retired person. You have obtained big money on your retirement. You want to invest it. But in which you will invest. As per accounting, every investment has risks. If he wants to invest his money in ABK Co., he should know ABK's business language. This business language is its past accounting records and financial reports. If that retired person can study it, he can understand whether to invest money in ABK company is best or not. Whether financial position of ABK co. is strong or weak. Whether company is earning good amount or not. Whether company has enough cash to operate business.

In end, I will say, suppose, you do not know English, you do not understand what did I have written in this content. I do not know Urdu. I can not understand the written sentences in the Urdu language. I saw these sentences just like black marks. But a person who knows Urdu language can easily tell the meaning of Urdu language sentences. It is very clear before knowing any language, you have to understand that language because you have to take benefit from that language.

My Important Words on this

If you want to become English Teacher, you want to learn English at any cost. You have to learn whole dictionary. You have to learn whole English grammar because if you will be unqualified you will be rejected within one day. Your whole career will be stopped. 

If you want to do business in your small shop, you have to learn accounting at any cost. Otherwise, all your business will be closed. Want to succeed in business or to fail in business. If you want to succeed in business, start to learn accounting today.

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