Accounting problems can be boring if you do not have the knack to do it. If you haven’t learned the art of solving academic problems in Accounting, you have probably missed the essence of the subject.
So all my students who are looking forward to some tips in this subject you are good to read ahead and learn the skill to solve the problems without any hindrances.
Firstly understand what is an Accounting?
If I had to put it as per Wikipedia, I would state as a subject that helps in measuring, processing and communicating the financial information about business entities and corporations. The study of this subject is important as it is this process that records and summarizes the financial information in a functional way. This requires a reliable and systematic way of recording the books and accounts.
What is the quandary in solving the Accounting problems?
Students tend to fear the problems of Accounting due to varied reasons-
- Peer pressure makes them not ask for any clarification of the topic during the lecture hours.
- Not attending the lectures regularly.
- Ambiguity in the subject
- The absence of experts’ advice
- Fear of the subject.
- Too many tasks to do that there remains no time to concentrate on Accounting.
How to solve academic problems?
Solve problems related to the chapter
Remember one thing; your professor is going to give you problems related to your topic. Sometimes it may go tricky so that you think out of the box, but the baseline remains the same. So there is no need to get panic on seeing the problem. Go down the memory lane and ransack a quick brain scan on the chapters you have learned in that particular semester or class.
Thus, let’s say you had a chapter on mortgage and equity. There are equal chances that your problems will not be exclusively for mortgage or equity. Instead, the two topics will be combined in a way that can make you bewildered. Here is the deal,
Nick & Co owns a garage worth $ 500,000 and owes $360,000. You are expected to find the owner’s equity in the garage.
First get the facts right. Get your facts written somewhere such as
Assets are known as Liabilities + owner’s equity
Now, the calculation is simple, replace the statements with figures where assets are $500,000. However, since the company has a loan and has to be paid back, it becomes a liability too. Thus, the owner’s equity will be
Owner’s equity = Company’s assets – Liabilities
$500,000- $360,000= $140,000
Start teaching your comrades
Trust me when I say this. There is no better way of explaining the problem to you but to explain the same to somebody else. It helps you to digest the fact that how well you know the problem. In this way, you will be able to learn the problems well.
Example- Melisa & Company and George Brothers both sell mobile phones. Their earnings and costs are recorded. Melissa & Company sells $250,000 of mobiles for the year 2017 and incurs the production cost of $125,000. George Brothers sell $ 375,000 for the year 2017 and production cost is $225,000
Now that you are going to begin to explain it to your friends, you must know the fundamental level of both the companies are the same and record revenues and expenses. Use the conservatism principle where the recording of revenues, assets, as well as expenses or liabilities, is recorded only when it is decided to be incurred or the company thinks it will occur. Similarly, the principle of consistency will help to adopt one Accounting method that remains consistent for years together. Thus, with this, you will be able to judge whether or not Melisa & Company should write off the production cost for 2017 or will start for 2018.
Join a forum
There are several forums on the internet where students from all around the globe come to form a group. Such forums are especially to discuss various problems. What may hold tough for you may not be the same for others!
So you can always put your problems across the platform and you will soon seek answers and ways to do it. You get to share question papers and solve them. You will see the confidence in you has built up. You build friends and realize that Accounting is not that tough a subject.
Seek a professional’s help
When I say professional help, I mean an expert. These experts’ could be a professor in the college or a tutor at the coaching class or online tutor. Present day getting an appointment with the professor is a tedious task.
You got to be waiting for his free lectures. Similarly is the case with coaching class tutors. They are burdened with other classes. Approaching him for answers can be time-consuming.
But let us look at the scenario of online tutors. The best part is you don’t have to go as per their whims and fancies but the reverse is true. The experts at the online portals are experts. They have knowledge about each topic of Accounting.
Hence, whether it is 2 am in the night or 2 pm in the afternoon, you will find the right online tutor doing the needful for you. Plus, you get innumerable tips and question papers to practice.
With this, it is a wrap. I look forward to hearing from you and your comments on what you think and how I can help you further. Do get yourself glued to this space for more updates. Till then happy Accounting problem-solving!
Michelle Johnson the blogger for this blog is an astounded tutor who excels in the field of Accounting. She is known for her candid nature and the way she approached every problem of Accountancy. Students under her tutoring score highest and have in-depth understanding. He is an online tutor for myhomeworkhelp.com and loves writing about students’ problems and questions.