6. Read the article and discuss

Is Accounting a Good Career Choice?

Accounting has been around since the beginning of trade. Through the years of ongoing development, it has become a major player in the professional spectrum.

Today, it continues to accommodate a great number of business professionals around the world. Careers in accounting are flourishing due to the steady demand for its services. It is indeed one of the most promising professions.

And It's an Excellent Choice.

One of the frequently asked questions regarding this matter is: "Is accounting a good career?" I hear that a lot especially from my accounting and financial management students. I also see that question posted in accounting forums and around the net.

People have different takes on this and the answer depends upon what you want in life, really. Now that would be a totally different (and quite long) topic so let's not go into that. We'll get into the hard facts instead. If you ask me, well, I'd say yes. I think accounting is a good career choice. And I'll tell you why.

Stability

Accounting offers a stable rate of employment amidst economic fluctuations. Some professions take a big slap when the economy dives. But not accounting.

Businesses need to keep track of their operations to be able to find ways to survive economic plunges. They need to report their earnings to the state and pay taxes, regardless of the economic situation. Managers need to regularly furnish monthly or quarterly reports to the board. Get the idea?

Accounting is a necessity in business. And with the massive business activity we have (and will continue to have), there's just plenty of work for new and seasoned accountants.

Compensation

Accounting professionals enjoy decent remuneration. The salary range varies as to your job description, level of experience, educational background, location and other factors.

Bookkeepers, accounting technicians and clerks receive an average of $15,000 to as high as $35,000 annually. Young certified accountants' salary ranges from $30,000 to $60,000 while seasoned accountants and top management officers receive as high as $200,000 per annum.

Diversity

In accounting, you have a wide selection of fields and areas of practice to choose from. You can work as an employee with steady shifts and routinary tasks if you want. Also, with sufficient qualifications, you can work freelance and have your own clients. Business organizations will need your expertise to prepare, analyze, or audit their financial statements. You can also work as an instructor in the academe; become a book author, a fraud investigator, or an information systems specialist.

7. Choose the correct answer

1. The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the

a) balance sheet;

b) income statement;

c) statement of cash flows.

2. The financial statement that reports the assets, liabilities, and stockholders' (owner's) equity at a specific date is the

a) balance sheet;

b) income statement;

c) statement of cash flows.

3. Under the accrual basis of accounting, revenues are reported in the accounting period when the

a) cash is received;

b) service or goods have been delivered.

4. Under the accrual basis of accounting, expenses are reported in the accounting period when the

a) cash is paid;

b) expense matches the revenues or is used up.

5. Assets are usually reported on the balance sheet at which amount?

cost

a) current market value;

b) expected selling price.

6. Unearned Revenues is what type of account?

a) Asset;

b) Liability;

c) Stockholders' (Owner's) Equity.

7. Accounting entries involve a minimum of how many accounts?

a) one;

b) two;

c) three.

8. Financial accounting is focused on the __________ financial statements of a company.

a) external;

b) internal.

9. Financial statements report the fair market value of a company.

a) True;

b) False.

10. Which of the following will cause owner's equity to increase?

a) expenses;

b) owner draws;

c) revenues.

11. Which of the following will cause owner's equity to decrease?

a) net income;

b) net loss;

c) revenues.

12. The accounting equation should remain in balance because every transaction affects how many accounts?

a) only one;

b) only two;

c) two or more.