Abstract
Various problems that are still faced by Micro, Small and Medium Enterprises (MSMB) are in utilizing the use of financial statements. The inability to practice accounting is the main factor that causes problems and triggers MSMB failure in developing their business. This study aims to determine: (1) the effect of business size on MSMB perception on the importance of financial statement preparation, (2) the effect of time on MSMB perception on the importance of financial reporting, (3) the influence of educational background on MSMB's perception of the importance of preparing financial statements, (4) the effect of business size, length of business, educational background on MSMB's perception on the importance of preparing financial statements. The results of this study indicate that (1) there is no positive effect on the scale of the company on the use of accounting information. Evidenced by a regression coefficient of 0.222, the value of t is greater than t table 1.258, and the significance value is 0.210 (0.210> 0.05). (2) there is a positive influence of accounting knowledge on the use of accounting information. Evidenced by a regression coefficient of 0.188, the value of t is greater than t table 4.629, and significant value of 0.000 (0.000
Highlights
A few years ago, the population increased greatly from the number of available jobs
The regression line coefficient testing is carried out as follows: For the business size variable (X1), the coefficient value 0.222 is found so the regression line equation is Y = 6.976 + 0.222 X1, with t arithmetic = 1.258, t table = 1.976, and sig. = 0.210, because t arithmetic is smaller than t table (1.258 0.05), Ho can be accepted as a variable of business variables in accordance with the expectations of financial MSMEs
For the business length variable (X2), the coefficient value is 0.188 so that the regression line equation is Y = 6.976 + 0.188 X2, with t arithmetic = 4.629, t table = 1.976, and sig. = 0,000, because t arithmetic is greater than t table (4.629> 1.976) and the significance value is less than 0.05 (0.000
Summary
A few years ago, the population increased greatly from the number of available jobs. This addresses young people to create their own opportunities by launching businesses. Most of them are classified as micro, small and medium enterprises (MSMEs) business sectors. Not much different from the notes of Kadin (Indonesian Chamber of Commerce), the contribution of the MSME sector to gross domestic product increased by 57.84% to 60.34% in the last five years. Employment absorption in this sector rose from 96.99% to 97.22% in the same period. Data from the Central Statistics Agency, after the economic crisis of 1997-1998, the number of MSMEs did not decrease, International Journal of Economics, Business and Accounting Research (IJEBAR)
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