Explain

Question 1

Explain the difference between an Accounts Receivable and an Accounts Payable.

Answer 1

One of the accounts are receiving money and the other is taking out money

Question 2

Explain the three accounting concepts

Answer 2

1. Provide information to people who need to make decisions about the business
2. Ensure accountability
3. Evaluate the performance of the business

Question 3

Explain why a business should keep financial records

Answer 3

To provide financial information to people who need to make important decisions about the business
To have proof to gain back taxes and money
To know how to plan for a better future