Study Guide Chapter 1: KCQ's

Key Concepts:

• The whole idea of studying accounting seemed and still does seem daunting to me, I've never really been good with numbers. And it didn't help that I felt like everyone else was one step ahead of me, knowing the majority of others in the course would've studied accounting in High School and I didn't. I felt like I was behind, still trying to understand and grasp the smallest details of it all that everyone else would've already had under their belts from at school (or previous courses and past knowledge, even). So I'm not going to lie, a few parts of this study guide for me was like almost reading another language, and I found myself having to re-read over certain paragraphs to try and drill the meanings into my head. But overall, this reading has helped me learn, grasp some of the basics of accounting, and most importantly, make me feel a little better about undertaking this whole course, even if I’m still having a little trouble understanding a few things. I believe this whole chapter hits home that accounting is more than just focusing on the numbers, and recording a whole lot of transactions of a business. It's more helping us connect to reality, to understand what is really going on in a firm.

• Reading and understanding the whole accounting equation and idea of assets, liabilities, credits and whatnot, felt like it was making my brain explode. Although, by reading thoroughly, I did get a great idea of what these terms really mean. It was interesting to read the definitions behind what a firm’s profit and loss is, and how exactly they are calculated and figured out.

• The other day while waiting in line in a café at Emu Park, I thought to myself - Wow, someone came up with the idea and the money to make this whole place happen, and there would be accountants behind it, as well. Then I thought of all the other shops in the area, and about how all of these would have the exact same aspects. This made me realise just how much business in involved in our day-to-day lives, most of the time without us even acknowledging it. This helped me realise just how much we are surrounded by business, and made me wonder - where would we be without it? Where would we be without these people's ideas? Where would we be without the accounts? There really are businesses everywhere we look, and all around us.
• From this reading, I started to gain an insight and understanding that business really does have a lot to do with accounting. Having it as a compulsory subject for my Diploma of Business degree, I really wasn't sure exactly why I had to study this accounting course. However, I now know that accounting can hinder us in creating value in business and in our investing activities - as well as it being a powerful way of viewing business. It was interesting to read that so many people involved with business have accounting degrees, making me understand just the extent to how accounting has a role in business.  
• I can understand the idea of double-entry accounting. When I was working for the elections at the Yeppoon Courthouse, it was a very precise and lengthy process in which we had to record the votes on both an excel spreadsheet and also on a piece of paper, which relates to the idea of recording the same 'transaction' twice. Although not the exact same method as double-entry accounting, I can understand the importance of safekeeping the information. In fact, the whole description of what a bookkeeper does, reminds me a lot of the process I had to do while undertaking that job.
• I believe that computers are truly a blessing, however biased that may seem from someone in the 'digital native' generation - but really, it's scary to think about a life without computers, or the internet. And it's even scarier to think of a time where quills are paper were considered 'hi-tech'. Reading about this digital side of accounting in this chapter engaged me more into the reading, being the tech-savvy queen that I am. It really came to a surprise to me that I actually had no idea of the real reason behind the design of the keyboard, which I found really interesting! However, there is something I disagree with, and that is the idea of voice recognition taking over typing in the next decade. I have the feature available on both my laptop and iPhone, and I've never felt the need to use it. I don't know if that's just because I'm a fast typer or because I get sick of my own voice, but I just don't like the idea. And I'm not sure if it's just me, but the idea of a bunch of university students taking down notes in either a library or lecture room, by each individual talking out loud to their device - seems a bit odd, and even a bit annoying, to say the least.

Key Questions:

• What are accounting software packages and what do they do?
• What is the definition of proprietor?
• What is an entity concept?
• Why is the term still referred to as 'bookkeeping'?
• What exactly are input markets, product markets and capital markets?