Question

PART 1

A) Explain what accounting is. Also, identify the users of accounting.

B) How accounting helps in the recording process and Identify the basic steps in the recording process.

Answer 1

Ans : a) Accounting is measurement, processing and communication of financial information to the stakeholder of a business or corporation on timely manner The various users of Accounting are Creditors, Debtors, Shareholders, Long term fund providers and Government Departments.

b) Accounting helps in recording process as it record the financial transaction from the very beginning till the end until it is reported to various stakeholders of the business and corporations. Basics Steps involved involved in recording process with the help of accounting recording process

1. Identifying the source document

2. Recording the transaction in the records

3. Posting the information to ledgers and

4. Reporting the information in the ledger to the stakeholders.