Accountancy, asked by sadiaranahanif586, 5 months ago

what is accounting and its uses​

Answers

Answered by riya7035
2

Explanation:

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it. This information is accumulated in accounting records with accounting transactions, which are recorded either through such standardized business transactions as customer invoicing or supplier invoices, or through more specialized transactions, known as journal entries.

Once this financial information has been stored in the accounting records, it is usually compiled into financial statements, which include the following documents:

Income statement

Balance sheet

Statement of cash flows

Statement of retained earnings

Disclosures that accompany the financial statements.

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Answered by MissQueen00
1

Answer:

Accounting is helpful for recording all business transaction and when businessman checks the record, he can easily remember it and use it for his business purposes.

The main objective of accounting is to record financial transactions in the books of accounts to identify, measure and communicate economic information. Moreover, tax reporting agencies require you to keep books at a minimum level that tracks income and expenditure

RECORDING TRANSACTIONS

BUDGETING AND PLANNING

DECISION MAKING

BUSINESS PERFORMANCE

FINANCIAL POSITION

LIQUIDITY

FINANCING

CONTROL

LEGAL REQUIREMENTS

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