Questions and Answers
What is the first step in the accounting process?
Identifying business transactions
Which function of accounting involves putting the balances of all accounts at one place?
Summarizing in trial balance
Why are only transactions that can be measured in terms of money recorded in books of accounts?
To prevent fraud and omission
What is the purpose of classifying transactions in accounting?
Signup and view all the answers
Why is communicating financial data an essential part of accounting?
Signup and view all the answers
What is the primary purpose of bookkeeping?
Signup and view all the answers
Which of the following is a limitation of accounting mentioned in the text?
Signup and view all the answers
What is one advantage of accounting mentioned in the text?
Signup and view all the answers
Which statement best describes the scope of accounting compared to bookkeeping?
Signup and view all the answers
Why are financial accounts considered unsuitable for forecasting according to the text?
Signup and view all the answers
