Question

Your friend, James, made this comment: “My major is biology and I plan to research for cures for major illnesses. Thus, I have no need to study accounting.” Required: What is your response to James? Answer should be in point form

Answer 1

James, you are entering a dynamic profession and you have the opportunity to make contributions to society. While science is your profession , you will not be able to ignore the need to understand accounts. Accounts staff and professionals are available to assist you but

• As a manager, you need to review accounts information and make decisions. Budgets are an important part of your research .
• As an employee, you are concerned about the financial situation of your employer. Thus, you will have to be able to read the company’s financial statements.
• As an investor, you will gain interest in the financial statements of many companies. You will probably not prepare any financial statements, but you will need some understanding of how they are prepared. You will need an understanding of how to interpret the financial statements.