Business Accounting

Question 1

To improve the decision-making process and reduce
risk, information is used but it must be:

Answer 1

1. Informative
2. Relevant
3. High Amount of Information

Question 2

Financial Accounting

Answer 2

is the process of
reporting and communicating financial information
* Captures snapshots of financial position at a set point in time which provide
information that finance activities are based on
* Activities include recording transactions, collecting financial information,
compiling reports and analyzing/summarizing
* Develop income statement, balance sheet & cash flow statements

Question 3

Conservatism Principle

Answer 3

Project Income Lower & Estimates
Outflow Higher
* Avoid Overextended Business With
Overvalued Assets And Undervalued
Liabilities