Question

Questions for P
Short Answers
1. Define accounting
2. State the end product of financial acco
3. Enumerate main objectives of accountin
4. Who are the users of accounting inform
5. State the nature of accounting informat
6. Who are the external users of informat
7. Enumerate information needs of manag
8. Give any three examples of revenues.​

Answer 1

Answers:-

1) Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.

2) The end product of financial accounting are Trading account, Profit and loss account and Balance sheet.

3) The main objectives of accounting are maintaining a complete and systematic record of all transactions and analyzing the financial position of a business. ... A businessman can ascertain the operating results and financial position of his business at any time through Accounting.

4) Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

5) Nature of Accounting: We know Accounting is the systematic recording of financial transactions and presentation of the related information of the appropriate persons. ... Accounting is an art: Accounting is an art of recording, classifying, summarizing and finalizing the financial data.

6) External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

7) They require data for decision making and business planning.

To prepare reports related to funds, costs and profits to ascertain the soundness of the business.

8) Examples of revenue accounts include: Sales, Service Revenues, Fees Earned, Interest Revenue, Interest Income. Revenue accounts are credited when services are performed/billed and therefore will usually have credit balances,,

PLS MARK ME BRILLIANT BECOZ I HAVE HELPED YOU