Why should you study accounting? You should study accounting because it can help you succeed in business. In fact, your chances of success are pretty dismal if you are ignorant about accounting. Imagine playing football or Monopoly without knowing how to keep score. In business, accounting is how you keep score. Business is highly competitive. If you do not know the rules of the game, you will be severely disadvantaged.

AccountingService-based profession that provides reliable and relevant financial information useful in making decisions. provides information that helps individuals and business managers make better decisions. Do not underestimate the importance of reliable information. If you could predict which companies will succeed and which will fail, you could become a very wealthy Wall Street investor.

The usersIndividuals or organizations that use financial information for decision making. of accounting information include a variety of people and organizations. These users are commonly referred to as stakeholdersParties interested in the operations of a business, including owners, lenders, employees, suppliers, customers, and government agencies. because they have either direct or indirect interests in the entities that issue accounting reports. The fortunes of a business directly affect such stakeholders as owners, managers, creditors, suppliers, and employees. For example, owners and employees of a business prosper when the business makes money and suffer when the business loses money. In contrast, the fortunes of a business do not directly affect such stakeholders as financial analysts, brokers, attorneys, government regulators, and news reporters. For example, financial analysts use accounting reports to advise clients to buy or sell stock of companies but the performance of the companies they recommend does not personally affect the analysts.

Accounting is a dynamic discipline. It affects a wide range of individuals and organizations. Accounting is so important that it is often called the language of business. In fact, accounting affects not only individual businesses but also society as a whole.