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MY FEAR OF ACCOUNTING.

Adekunle Adewolu Written by Adekunle Adewolu · 1 min read >

MY FEAR OF ACCOUNTING.

I have had some fears in my life; the fear of water, the fear of public speaking/social anxiety, the fear of Accounting, and the fear of failure. These were the pressing fears I battled with. A few years ago, after two drowning scares, I got a trainer to teach me how to swim. The fear of public speaking lingered, to tackle that, I went on to become an usher in my church, a big auditorium, this has helped my social anxiety to a large extent, and management communication also is helping with my fear of public speaking: this will be addressed in another write-up.

Accounting was a dreaded subject for me growing up, one I had managed to dodge in the academic setting all my life, even though we all do accounting at the basic level as long as we handle our finances. Accounting and all its technicalities always gave me a brain freeze, and I somehow created a mental block against the subject.

I enrolled in the Modular Executive MBA in the Lagos Business School, the most prestigious school in Nigeria, to be honest, I had no idea the courses I was going to be taking. Upon going through the course contents, to my shock, the scary accounting a.k.a CFA, Whew!

To be honest, I was scared, I voiced it out to my colleagues severally, and I remember a group member telling me to keep an open mind in a bid to allay my fears. The first few pre-module classes with Professor Owolabi, whom we call baba in the MEMBA11 class, were a breath of fresh air accompanied by the interesting style Mr. Ojiabor used to teach. Their teaching style is similar to “teaching for dummies”, they understand that some of us have no background in accounting and tackle the teaching in that manner, and for that, I am deeply grateful.

From understanding that Accounting is the language of business, to the accounting equation A=L+OE, where A is Asset, L is Liability, and OE is the owners’ equity and their relationships. The 4+1 financial statement and its components are listed below:

  • Statement of financial position.
  • Statement of profit or loss.
  • Statement of change in owners’ equity.
  • Statement of cash flow.
  • Notes to the financial statement.

I have a fair understanding of financial statement analysis, using horizontal analysis, vertical analysis, trend percentages, and ratios.

I was also taught the different ratios used in analyzing the financial statement, and how to calculate and interpret them.

It is important to state that different users make use of the financial statement, users like investors; accountants; management; external auditors et al, use these analyses to make one form of decision or the other. Some of the ratios are listed below:

  • Liquidity ratio
  • Gearing ratio
  • Profitability ratio
  • Activity/Efficiency ratio

It is important to state that these ratios have subsets like current ratios, quick ratios, cash ratios, debt to equity, debt to asset et al, and they all have their different interpretations.

As I prepare for the coming exam, I am optimistic that I will win the battle against my fear of accounting.

#MEMBA11

Written by Adekunle Adewolu
Sharpening my creativity with written words. #MEMBA11 Profile

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