Purpose and phases of accounting Flashcards
1
Q
Before the effects of transactions can be recorded, they must be measured.
A
Measure
2
Q
it is imperative that the result of the summarization phase be interpreted or analyzed to evaluate the liquidity, solvency, and profitability of the business
A
Interpret
3
Q
It handles the financial operations of the business and also provides information and advice to other departments.
A
Record
4
Q
It reduces the effects of numerous transactions into useful groups or categories.
A
Classify
5
Q
financial data is achieved through the preparation of financial statements.
A
Summarize
