Unit iii: The basic principles and methods of accounting

To study about the accounting principles and methods of accounting we have to know more about the business transaction and how it affects the business and as a personal. As a teacher how i feel is that to teach those lessons to the students we have to relate it with their personal experiences about the business transaction to under more about it and than we can related it to the accountancy. 

One of the difficult things that i have seen that makes difficult to understand is that most of them are familiar with business trans action but not aware about the what are the items of financial statements. so we have to teach students the concepts of assets, liabilities and equity. Teaching those concepts are not enough because we have to teach how to calculate it. In order to introduce those concepts we have to learn accounting equation.    

Accounting Cycle. 

After the understanding about accounting equation and items of financial statement students have to prepare financial statement. To prepare those thing its important for us to understand accounting cycle. most difficult things that I faced during this process is the application of accounting standards. we face difficult to apply those accounting standards to prepare financial statements. On top of that when we prepare while preparing financial statements also we have to prepare with accurate and relevant figures because there are lots of accounting information users. Such as external users( investors, customers, financial institutions, governments) and internal users (employees, management, owners)