Introduction To Book Keeping - JSS1 Business studies Past Questions and Answers - page 2

The primary purpose of bookkeeping is to accurately record, organize, and maintain financial transactions of a business in order to provide reliable financial information for decision-making, financial analysis, and regulatory compliance.

Consistency ensures uniformity and comparability of financial data over time, making it easier to track changes, analyze trends, and make informed decisions based on reliable information.

Accurate record-keeping is crucial because it provides reliable financial information that stakeholders, such as business owners, investors, and regulatory authorities, can trust for making decisions, ensuring compliance, and assessing the financial health of the business.

Reconciliation involves comparing financial records, such as bank statements and accounts receivable/payable, to ensure they match. This process helps detect errors, discrepancies, or fraudulent activities, thereby ensuring the accuracy and integrity of financial data.