The Effect of Level of Education, Accounting Knowledge and Size of Business Entity on the Quality of Financial Statements (Case Study: UMKM Medan Tuntungan District)

This study aims to determine and test whether educational background, accounting understanding, and business size affect the quality of financial statements of MSMEs in Medan Tuntungan District. And to find out which variable has the most influence on the quality of financial statements. A quality financial report is a financial report that can provide information to its users. This research uses quantitative methods. The data used is primary data obtained from respondents using a questionnaire. The population in this study were MSMEs in Medan Tuntungan District. The sampling technique used purposive sampling technique so that only 37 MSME respondents were obtained. Based on this research, it is found that educational background and business size have no significant effect on the quality of MSME financial reports. Meanwhile, accounting understanding has a significant effect on the quality of MSME financial reports.