Title: “Difficulties faced in understanding Financial Accounting”.
|
Authors: |
|
|
Atharva Borade |
70 |
|
Prakash Dhage |
71 |
|
Shreyas Prabhu |
106 |
Introduction:
Understanding financial accounting can be challenging due to its technical nature and complex terminology. Many find it difficult to grasp concepts such as double-entry bookkeeping, financial statement analysis, and the application of accounting principles like GAAP or IFRS. Additionally, interpreting financial reports and understanding the implications of various transactions can be daunting. These challenges often require a strong foundational knowledge of accounting principles and continuous practice to master.
Objective:
The objective of the survey on difficulties faced in understanding financial accounting is to identify common challenges that students or professionals encounter when learning or applying financial accounting principles.
Literature Review:
1: Opportunities and Challenges of Financial Accounting in the Era of Big Data.
Yu and Zhu (2023) explore the opportunities and challenges presented by big data in the field of financial accounting. The paper discusses how big data can enhance financial reporting, auditing, and decision-making processes. It also addresses challenges such as data security, privacy concerns, and the need for professionals with data analytics skills.
2: Further Evidence of Critical Thinking and Final Examination Performance in Advanced Financial Accounting.
Abeysekera (2011) presents further evidence on the relationship between critical thinking and performance in advanced financial accounting exams. The study suggests that students who demonstrate higher levels of critical thinking tend to perform better in their final exams. The paper highlights the importance of critical thinking skills in the field of financial accounting education.
Data Collection:
A survey questionnaire was designed with questions related to difficulties faced understanding financial accounting. The Likert scale was used to gather responses from the students, ranging from “Strongly Agree” to “Strongly Disagree.” The questions aimed to assess the students’ experiences of the difficulties faced in understanding financial accounting. A random sample of 100 college students was selected to participate in the survey to ensure a representative representation of the student population.
Data Analysis:
Upon completing the survey, the collected data was subjected to statistical analysis. The mean, standard deviation (SD), and standard error (SE) were calculated for each survey question (Q1–Q5). The mean represents the average response on the Likert scale, while the standard deviation provides a measure of the variability in the responses.
Hypothesis Testing: To test the hypotheses, a significance level of 0.05 (95% confidence level) was chosen. The critical value for a two-tailed test at a 95% confidence level is Z = 1.96.
|
|
Q.1 |
Q.2 |
Q.3 |
Q.4 |
Q.5 |
|
Mean |
3.03 |
3.07 |
2.74 |
3.39 |
3.28 |
|
SD |
1.22 |
1.17 |
1.30 |
1.02 |
1.16 |
|
SE |
0.12 |
0.12 |
0.13 |
0.1 |
0.12 |
|
Z |
0.25 |
0.58 |
-2 |
3.9 |
2.33 |
|
Negative/Neutral/Positive |
Neutral |
Neutral |
Negative |
Positive |
Positive |
Confidence Level is taken at 95% i.e. Z=1.96.
Conclusion:
- Students are neutral towards understanding financial terminology.
- Students are neutral towards accounting rules and regulations.
- Students did not struggle with the numerical calculations.
- Students can apply accounting principles to real world scenarios.
- Students can interpret financial statements.
References:
- Yu, Jiayi & Zhu, Lina. (2023). Opportunities and Challenges of Financial Accounting in the Era of Big Data. Highlights in Business, Economics and Management. 10. 464-468. 10.54097/hbem.v10i.8140.
- Abeysekera, Indra. (2011). Further Evidence of Critical Thinking and Final Examination Performance in Advanced Financial Accounting. Accounting Education. 20. 1-1. 10.1080/09639284.2011.560642.