Accounting information is essential to the efficient running of a business.
It assists managers in understanding the assets and liabilities a business has, and in monitoring income and expenditure.
Bookkeeping is the recording of monetary transactions in a business.
Most businesses exist to make a profit, by selling goods or providing services.
In order to measure performance and year-end position (cash, inventory, loans etc) businesses prepare final accounts for the end of each accounting year.
Final accounts are based on the business's financial records.
Need to be maintained for all commercial transactions undertaken by a business
Must contain complete, accurate and valid financial information
Accounting is the process Of recording, analysing and summarising the transactions of a business.