ACC 201 Module 8 Discussion Post Professional Relevance of Financial Accounting PDF

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Discussion post was to see if I comprehend what I read in the chapter for the 8th week of professional and relevance of financial accounting....

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Maleka Monono Thursday, April 23rd 2021 ACC 201 Module 8 Discussion Post Professional Relevance of Financial Accounting While understanding the basics of financial accounting is certainly important for accountants, it is also an important skill to have in all types of professional fields. In this discussion, you will make connections between your chosen field and what you have learned about financial accounting in this course. Address the following in your initial post:  

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Describe your current or aspiring professional identity, including your career and the field in which you work or hope to work. Think about the types of financial transactions your chosen field is likely to generate and how they will need to be reported and accounted for by the business. Describe at least three examples of such transactions and how they affect the financial statements and the business in general. Reflect on and comment about the importance of financial accounting in your field.

Hello everyone, My current professional identity is a small business owner. However, in the future I would like to continue my entrepreneurship and expand into real estate. More specifically, investing into other companies (stocks/shares) and remolding old homes for the purposes for Airbnb’s/rentals. The type of finance transactions my chosen field(s) are likely to generate are sales, purchases, receipts, and payments. More specifically the buying of supplies, long – term investments, short – term investments, operating expenses, purchase of equipment, upkeep of assets etc. For example, in terms of real estate, the purchases of materials (cement, tile, pipes, sand, etc,) would go under both the income statement and balance sheet under expenses. This increases assets and potentially liability if bought on credit. Another example is, the purchase of property, this would record under an asset account (shown under stockholders’ equity) and a depreciation expense. This increases the companies’ assets. The last example regarding my clothing line would be the sales of merchandise. Merchandise inventory will be debited, and COGS (costs of goods sold) would be credited. For a cash sale (which is the transaction that I mostly encounter) my accounts receivable is credited, and cash is debited. This will be seen under the balance sheet. The importance of financial accounting is very important as an entrepreneur/small business owner. It helps to keep track of operations and financial accountability. This is done through financial statements. It is also important for companies looking to invest, to refrain from making any poor decisions on their part. Personally, this class has helped me improve the financial part of my business and personal life as I am more aware of my careless spending and purchases....