12.0: Chapter Scenario
WorldCorp has grown into a large, global corporation, requiring sophisticated and complex accounting. This also means that the company’s overall finances must be handled by comprehensive accounting software. However, within WorldCorp, many departments need to understand and analyze information from the accounting software at the department, unit, or project levels, which they can do using Microsoft Excel spreadsheets. Excel can be useful for calculating potential expenses for a new project or initiative and for projecting revenue for various scenarios.
Having a sound understanding of the basics of accounting is a valuable asset for many workers, even if they are not directly or formally involved in the company’s accounting processes. Being familiar with the basic concepts and terminology of accounting can help you understand financial decisions. This includes knowing common financial accounting formulas, relating expenses and revenue, being familiar with financial statements, and understanding which software applications are used for different levels of accounting. As another benefit, learning accounting principles can provide a valuable framework for understanding and managing personal finances.