Financial Accounting?

Question

I don't like it. I'm actually terrified of this class. I hate math and I'm a slow learner.
Am I just overwhelmed? Is it not that bad?

Answer 1

Financial Accounting can be daunting. I believe that every student should take a class in basic bookkeeping before an Accounting Course. Financial Accounting teaches a lot of theory, yet your don't have the 'legs' of know how a basic set of financial books actually work. I believe this is a serious flaw in how Accounting is taught at the college level. It is like expecting a child to walk without getting to learn to crawl.

Bookkeeping is the 'crawling' aspect of Financial Accounting. While it is considered a clerical task, if you don't have a basic understanding of how transactions are recorded by a company (i.e. basic bookkeeping), it is very hard to understand a concept like Depreciation.

Try to focus as much as you can, as early as you can, on understanding how the General Ledger functions, how double entry bookkeeping works, the Accounts Receiveable and Accounts Payable Ledgers.

If you can, try to imagine you own your own small business. How will you keep track of Sales and Expenses? How will you keep track of Payroll and Debt? You need to keep track of these expenses and budget for them in a business, just like you need to keep track of them in your personal life.

A few real world examples:

If someone owes you money, this is an "Account Receivable"
If you owe someone money, this is an "Account Payable"
If you get money from working this is "Income"
If you pay money for books, this is a kind of "Expense"
Things you own, like a car, are "Assets"
When you total all the stuff you own, and subtract what you owe, this is called your "Net Worth". For a corporation, it is called "Equity".

Of course, Financial Accounting becomes much more complicated, because of the huge number of transactions and scale of big business. Try to translate what you are learning into real life situations. If you know someone in business for herself, then ask her, she will probably have a good idea of how some of these concepts apply to her.

Accounting is more practical than theoretical, unfortunately colleges tend to start off with the theory. Don't expect to understand everything at first, work your way through the first course as best you can. Don't give up, one day the 'light' will turn on.

Answer 2

Actually, many people are disillusioned by the thought of accounting cause they think it is a lot of Maths. Financial Accounting is a lot to do with concepts and principles of accounting as opposed to hard core Maths.
Give the class a chance, start with an open mind, and you may realize it is much better than you thought!

Answer 3

Cost accounting is the accounting associated with the cost of producing your product. Financial accounting is the most general, it mainly focuses on accounting outside the company such as for taxes and auditing. Managerial accounting is more internal and is used mostly for making decisions about which direction to take a business.

Answer 4

I graduated from U.A.B. with a degree in accounting so I know how hard it is. I NEVER went to my other classes (psychology, english, etc.) and made straight A's but accounting kicked my rear. If you aren't majoring in accounting, you should only have one or maybe two classes. I would suggest a tutor and do not get behind or you will never catch up.

Answer 5

Relax, take a deep breath. Take one chapter at a time ... don't look at the whole book and overwhelm yourself. Ask lots of questions. Try taping the class if you can so you can review later. And yes, agreed, drink lots of coffee/caffeine products before/during/after class!!!!

Answer 6

Make sure you properly prepare for the class. Read the chapters twice. Do all of the HW and try a few additional problems. Do not be afraid to ask questions in class.

It is very easy to fall behind.

Answer 7

It is the most boring class you will take in a long time. Try to stay awake, drink lots of coffee or soda!

Good Luck

Answer 8

Chill out. Be afraid of electricity or running in a lightening storm. You have no reason to fear a class. Math is simple...everything works according to formulas. Study the formulas, make an "A!"

Good luck! :)