Discoveries, Revelations and Impressions
A presentation concerning accounting and finances was provided by Dr. Ebenezer. In his presentation, Dr. Ebenezer provided a brief overview of the phenomenon of financial accounting, as well as the process known as operational accounting. The presented identified the key functions of FA and the means of carrying out the procedure within an organisation.
Though the issues related to finances and accounting are traditionally perceived as “dry,” the lecture provided by Dr. Ebenezer seemed really enthralling to me. I was literally captured by the new and exciting facts about the phenomenon of accounting, the possibilities that it opens for a businessman, and the benefits that a company may obtain with the choice of a proper accounting strategy.
Particularly, the fact that financial accounting is opposed to operational accounting was quite a surprise for me. Before reading the lecture, I had no idea that the concept of FA had any phenomenon to oppose it to begin with. The resulting discovery of to two phenomena and the way, in which they completed the concept of accounting, made me feel that eventually some light has been shed on the issue.
The consequences of understanding the specified detail are beyond impressive – by using only FA in my practice, I would suffer considerable losses because of the lack of focus on the internal users1. The idea of taking huge losses, which may even exceed an organisation’s revenues (e.g., around $ 500,000 from the lack of attention to the knowledge management issues), literally made be relieved that I have acquired this essential piece of information.
The concept of financial accounting can be related to the Positive Accounting Theory. Allowing for an identification of the methods of accounting that lead to maximising the company’s profits, the specified theory strikes me as truly brilliant.
Suggested in 1990s as the means to explore the methods of accounting further and increase revenues, the specified theory, in fact, allows for improving the performance of a company to an impressive extent. The theory in question seems especially viable once the material covered in the lecture is integrated into it.
Indeed, by including both the processes related to the financial transactions, and the ones that concern organisational behaviour, into the accounting strategy, one will be able to predict the efficacy of specific actions taken by the company with huge precision.2
The presentation in question has clearly affected my decision-making strategies. Impressed beyond belief by the information concerning two types of accounting, I will necessarily make sure that the methods for both are well developed in the organisation that I will work for.
The possibilities, which the use of efficient accounting strategies with regard to the two accounting types opens, enthral me, and I feel very enthusiastic about my future professional progress. Though the challenges, which I may face in the course of these strategies implementation, frighten me and make me feel somewhat uncertain, I am positively sure that I will be able to come up with a viable approach for addressing them.
I have strong doubts that the two types of accounting described in the lecture occur in reality in a manner just as distinctive and obvious as Dr. Ebenezer represents them in his lecture; nevertheless, the fact that I already know so much about the financial issues in general and the process of accounting in particular fills me with hope for achieving success.
Bibliography
Ebenezer, S. “ChE 423 Process Economics & Management. Introduction to Financial Accounting.” Presentation for Project Management & Decision Analysis School of Chemical & Petroleum Engineering, 2014.
Mourik, Carien van and Peter Walton. The Routledge Companion to Accounting, Reporting and Regulation. New York, NY: Routledge, 2013.
Footnotes
1. S. Ebenezer, “ChE 423 Process Economics & Management. Introduction to Financial Accounting” (presentation, Project Management & Decision Analysis School of Chemical & Petroleum Engineering, 2014).
2. Carien van Mourik and Peter Walton, The Routledge Companion to Accounting, Reporting and Regulation (New York, NY: Routledge, 2013), p. 104.