Accounting Understanding and Financial Statement Quality among Micro Business Owners in Central Rappang Gold Market

                2023-05-21
              

Published

                1-13
              

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OPEN

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Marshanda Jufri

Faculty of Economics and Business, Muhammadiyah University of Makassar

Wa Ode Rayyani

Faculty of Economics and Business, Muhammadiyah University of Makassar

Abstract

Purpose: This study examines the effect of micro business owners' accounting understanding on the quality of financial statement preparation among gold traders in Central Rappang Market, Sidenreng Rappang Regency.

Research Methodology: A quantitative survey with purposive sampling was employed. The sample consisted of 50 gold traders operating in Central Rappang Market. Data were collected using a structured questionnaire with a five-point Likert scale and analyzed through validity and reliability tests, followed by simple linear regression using IBM SPSS Statistics 25.

Results: The measurement instruments were valid and highly reliable, with Cronbach's Alpha values of 0.960 for accounting understanding and 0.950 for financial statement quality. The regression equation was Y = 21.727 + 0.507X. The calculated t-value (4.434) exceeded the critical value (2.010) with a significance level of 0.000, indicating that accounting understanding has a positive and significant effect on financial statement quality. The coefficient of determination (R² = 0.291) shows that accounting understanding explains 29.1% of the variation in financial statement quality.

Conclusions: Improving accounting understanding among micro business owners is essential for enhancing the quality of financial statements and strengthening MSME financial management.

Limitations: This study was limited to a single research location and only one independent variable. Therefore, the findings should be generalized with caution.

Contribution: This study extends the literature on MSME accounting by providing empirical evidence from gold traders and supports accounting literacy programs based on the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM).

Accounting Understanding Financial Report Quality Gold Traders MSMEs MSME Financial Accounting Standards

How to Cite

Jufri, M., & Rayyani, W. O. . (2023). Accounting Understanding and Financial Statement Quality among Micro Business Owners in Central Rappang Gold Market. Jurnal Teknika Dan Informatika, 3(1), 1-13. https://doi.org/10.52909/1zcv0088

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