Uses of accounting

Question 1

Identify which 5 uses of accounting the statement is describing:

Accounting provides income statement/P&L statement of comprehensive income

Answer 1

Measuring the performance of the business

Question 2

Identify which of the 5 uses of accounting the statement is describing:

Accounting shows if your company is having income or loss

Answer 2

Measuring the performance of the buisiness

Question 3

Identify the term:

Over spent on budget (amount)

Answer 3

Deficit

Question 4

Identify which of the 5 uses of accounting the statement is describing:

Accountants use past financial performance to set realistic budgetary targets, allocate resources effectively, and ensure that the company’s financial goals align with its strategic objectives.

Answer 4

To create budget for the company

Question 4

Identify which of the 5 uses of accounting the statement is describing:

Accounting information helps businesses make informed investment decisions, such as buying or selling stocks, bonds, or shares in a business. It also aids in evaluating the risk associated with their investment choices.

Answer 4

To make investment decisions

Question 5

Identify which of the 5 uses of accounting the statement is describing:

Accounting provides cost data that helps in pricing decisions, cost control efforts, and identifying areas where cost reductions or process improvements are needed

Answer 5

Provides buisiness owners with information about the cost of various business information

Question 6

Identify which of the 5 uses of accounting the statement is describing:

It provides a quantitative basis for evaluating the company’s financial health and performance over a specific period. Key financial statements like the income statement, balance sheet, and cash flow statement are used to measure performance.

Answer 6

Measuring the performance of the business

Question 7

Identify which of the 5 uses of accounting the statement is describing:

Accounting enables them to make choices that optimize the company’s financial performance and align with its long-term objectives.

Answer 7

To make business decisions