Purpose of Accounting

Transactions need to be recorded to

• Meet legal requirements

• Help a business run smoothly

• Produce accurate reports

• Create jobs for accountants

The three business management functions of accounts are

• Planning, Controlling, Reporting

• Planning, Monitoring, Controlling

• Preparing, Manufacturing, Controlling

Accounting prevents fraud by

• Managing petty cash

• Internal Audits

• Validating new suppliers

The difference between a budget and the actual outcome is a

• Variable

• Vertigo

• Variance

Trade receivables are

• the money the business owes to suppliers

• the money owed to the business from customers

• the money the business has in the bank

Trade payables are

• the money the business owes to suppliers

• the money owed to the business from customers

• the money in the bank

Which of the following is not one of the five purposes of accounting?

• Control

• Certification

• Recording transactions

• Management of the business

• Measuring performance