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BTEC Business - Unit 3 The Purpose of Accounting Comprehensive Questions with Verified Answers Graded A+

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BTEC Business - Unit 3 The Purpose of Accounting Comprehensive Questions with Verified Answers Graded A+

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BTEC Business - Unit 3: The
Purpose of Accounting
Comprehensive Questions with
Verified Answers Graded A+
Purpose of Accounting - Answer: Accounting involves the recording of financial transactions,
planned or actual, and the use of these figures to produce financial information.



5 reasons why accounting is important to business success - Answer: Record Transactions.

Management of the Business.

Compliance.

Measuring Performance.

Control.



Record Transactions - Answer: Keeping records up to date and accurate. Essential for tax
payments to HM Revenue & Customers [HMRC].



Management of the business - Answer: Ensuring sufficient funds are available to run a business
successfully. Helps future planning.



Compliance - Answer: Financial reporting is governed by laws and regulations to ensure that
financial records give a fair and accurate picture of the business.

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