An assessment of accounting knowledge of undergraduates of management faculties in Sri Lankan universities

Abstract

This paper investigates the level of accounting knowledge of under graduate students of management faculties. In this study accounting knowledge refers accounting principles, accounting concepts, accounting standards, accounting methods, accounting practices, and accounting practice usage. Company Act no 07 of 2007 requires the legitimate requirement of the accounting function for the business in Sri Lanka. Data were collected from 597 undergraduates studying in five management faculties of newly established universities in Sri Lanka namely Rajarata University of Sri Lanka, Sabaragamuwa Universityof Sri Lanka, South Eastern University of Sri Lanka, Uwa Wellassa University and Wayamba University of Sri Lanka. Stratified sampling technique was adopted so that 45 percent from first year, 30 percent from second year and 25 percent from third year students are represented in the sample. Results indicate that the academic performances of the undergraduates have significant positive relationship with all the aspect of accounting knowledge. This indicates that Sri Lankan students graduated from management faculties are armed with accounting knowledge which is highly demanded by the field of management. Further, the results seem to suggest that accounting knowledge may be a factor in explaining the student academic performances in management faculties.