PRINCIPAL OF ACCOUNT

Question 1

🍄 Book-keeping 🍄

Answer 1

book-keeping is the process of recording business transactions and managing such records i books of accounting or in accounting software.
(Eg. Sage 50 Accounting or Quickbooks.)

Question 2

🍄 Accounting 🍄

Answer 2

is the process of recording ,classifying, summering, presenting, analyzing data and communicating the results in a formal way.

Question 3

🍄 Financial Statement🍄

Answer 3

the financial statement is the profit or loss which is produced by a business accounting.

Question 4

What are the two most important financial documents that a business needs to prepare?

Answer 4

1) Trading and profit and loss accounting
2)The balance sheet

Question 5

what is the requirements firms need to take

Answer 5

both statements have to be checked and verified by a firm of auditors as a part of legal requirement for correct financial reporting

Question 6

List persons who may be interested in the financial performance of a business.

Answer 6

and state why they may have an interest in it.

Question 7

Inland Revenue Department

Answer 7

Inland Revenue Departments

Question 8

Investors

Answer 8

these may be private individuals, companies, banks or any individual who invest which monitors the performance to ensure there is a return in their investment .

Question 9

Suppliers

Answer 9

this group will need to be sure of the financial stability of the business before accepting orders

Question 10

Customers/consumers

Answer 10

they will need to be sure of the financial stability of the
business before placing orders

Question 11

Employees

Answer 11

a sound business with a good working environment will help
to keep employees’ morale high and will be able to attract high-calibre new staff.