The Need For Book Keeping And Accounting - SS1 Accounting Past Questions and Answers - page 1
What is bookkeeping?
Analyzing financial data
Recording financial transactions
Forecasting financial performance
What is the purpose of accounting?
To record financial transactions
To make informed financial decisions
To comply with tax regulations
Which of the following is an example of a financial transaction?
Hiring a new employee
Purchasing office equipment
Conducting a customer survey
Which of the following is NOT a benefit of bookkeeping and accounting?
Maintaining accurate financial records
Making informed decisions
Attracting new customers
What would happen if a business did not practice bookkeeping or accounting?
They would struggle to manage their finances
They would attract more customers
They would have more time to focus on other tasks
What is the difference between bookkeeping and accounting?
Bookkeeping involves recording financial transactions, while accounting involves analyzing, interpreting, and summarizing the financial data recorded in the books.
Why are bookkeeping and accounting important for businesses?
Bookkeeping and accounting help businesses maintain accurate financial records, make informed decisions, and comply with tax and regulatory requirements.