Improving Financial Statement Quality With Accounting Understanding

This study aims to analyze accounting understanding of the quality of financial statements in Micro, Small and Medium Enterprises (MSMEs) in Bandung. The reason for conducting research is because MSME actors in carrying out their activities often experience limited capital. To obtain capital, one of the efforts made is by presenting quality financial reports. A good understanding of accounting can help in presenting quality financial statements. This research uses descriptive and verificative methods with a quantitative approach. The unit of analysis in this research is MSME actors in the city of Bandung. The analysis method uses SEM PLS. The results showed that accounting understanding affects the quality of financial statements