The Lightning Round

Written By: Dr. Rich Houston, Director of the Culverhouse School of Accountancy

To all of our Honor Graduates and scholarship recipients, Congratulations! You work hard and deserve to be proud, so celebrate in whatever way you celebrate, and then get back to work.

To all of you, including those of you trying to make up ground…it’s never over until it’s over and you should never stop until you’re legitimately done.

And now some things actually mostly about accounting! “It” always has to balance. Often, achieving balance is like completing a puzzle, and who doesn’t like a good puzzle.

Try acting out transactions to fully understand them. Yesterday, I gave someone a $5 bill and a piece of paper we called a stock option, and in exchange she gave me a piece of paper we called a share of stock. Light bulb moment for her.

Always, always, always write down and refer to the accounting equation, A = L + OE. It’s not a sign of weakness that you’re using it, it’s quite the opposite. It provides a framework for understanding every transaction you complete in your life, both business and personal. I had an amazing professor in college who, at the beginning of every class period, grabbed a piece of chalk and wrote A = L + OE on the wall over the blackboard. So perhaps I feel strongly about it, as did the people who had to clean the wall.

A = OE. I know that, even though I’m just trying to make a point, TF might point out that my accounting for the following transaction is not quite right. “You invest in yourself to improve your ability to add value in everything you do.” Debit intangible asset and credit paid-in capital, because it reflects an investment in the business called “your life.” By the way, I’m terrified that T’s pithy comment (no lisp) will be much more interesting than anything I’ve written.

Disclosure fraud in financial reporting, especially omissions, is extremely difficult to detect. Analogously, if you have a problem, disclose it to someone who can help or point you in the right direction. Do not rely on others to notice your omissions; instead, be proactive about making sure you’re being heard and asking for what you need.

And now, the lightning round:

• How can you call yourself a visual learner if you don’t write anything down?
• I said something like this to someone the other day: you certainly have the ability to do it but you’re living as if you don’t.
• There are two kinds of people in the world—those who say “I have a question for you” and those who say “let me ask you this.” Why does the latter sound more aggressive when it’s the one asking for permission?
• Sometimes you exhibit critical thinking skills by asking a great question or providing an insightful comment. Not that complicated, but you do have to make the effort.
• Some of you see putting forth maximum effort as a risk. I guess you can if you want, but just once try seeing it as putting yourself out there and giving yourself a chance.
• I heard someone say this the other day: If you want to be successful, hard work is inevitable.
• To be enthusiastic about pointing out mistakes requires knowing how to fix the mistakes.
• Lots of questions from a variety of people in class on Thursday. It was great. Keep it up.
• Finally, I like this cartoon, even though I don’t see an underlying message: