Mahnoor September 11, 2023

1. Financial transactions: keeping track of all the money related activities a

business does
Journal entries: writing down what happened with money in a simple record
Posting to the ledger: putting the money records into organized categories
Trial balance period: checking if all the money adds up correctly
Reporting period with auditing: showing everyone a clear report of the money and
getting it double checked

2. “How much profit did our company make last year?”

“What is our current cash balance?”
“What products or services are the most profitable for our business?”

3. Business owners: they use accounting information to understand their

company’s financial health, make decisions, and plan for the future.
Investors: people who put money into a business use accounting data to evaluate its
performance, potential, and if it is stable or not

5. There are several reasons such as allowing them to have a clear picture of their
company’s finances, income, expenses, and profitability. This helps them make
informed decisions. Business owners are then able to set achievable goals and monitor
the progress towards them.

7. Auditing is carefully checking a company’s money records to make sure they’re

accurate and follow the rules. This refrains any frauds people may be doing.