Question

Identify the importance of accounting by select statement(s) that is (are) correct below

Answer 1

Answer:

A,B,C are correct

Explanation:

Accounting involves collection and reporting of financial information of a firm. This includes information on financial position, profitability, , and cash flows of the business. This helps to make decisions on how to invest in the business, manage the business, or lend money to it and tracks business income and expenses. Among the choices, these three are correct;

• accounting information helps users make business and financial decisions .
• Accounting is a system that identifies, records, and communicates financial informationRevenues – Expenses = Net Income
• Accounting information is used throughout the year (NOT only at the end of a year when tax returns and financial statements are prepared) by businesses and individuals to help make financial decisions