BUSINESS BTEC UNIT 3 - AIM C INCOME
AND EXPENDITURE TEST WITH VERIFIED
ANSWERS [ GRADED A+]
What is accounting? - ✔️✔️It involves recording business's financial
transactions and prepare accounts from which business performance can
be evaluated
Purpose of accounting - ✔️✔️1. Recording transacti ons
2. Management of business
3. Compliance
4. Measuring performance
5. Control
©morren2025/2026.Year published 2026.
, Measuring perfomance - ✔️✔️Accountants measure how well the business
is performing through its:
- gross profit
- net profit
- assets owned by the business
- liabilities owed by the business
Without records it's hard to work out profit and loss
Control - ✔️✔️- tracks trade receivables and trade payables
- ensures business meets day-to-day expenses
- decrease chances of getting into debts
- allows business to identify unusual activities
Recording transactions - ✔️✔️Recording all the money coming into and
going out the business (enable business to keep track of payments
received and taxes (bills) are paid)
©morren2025/2026.Year published 2026.
AND EXPENDITURE TEST WITH VERIFIED
ANSWERS [ GRADED A+]
What is accounting? - ✔️✔️It involves recording business's financial
transactions and prepare accounts from which business performance can
be evaluated
Purpose of accounting - ✔️✔️1. Recording transacti ons
2. Management of business
3. Compliance
4. Measuring performance
5. Control
©morren2025/2026.Year published 2026.
, Measuring perfomance - ✔️✔️Accountants measure how well the business
is performing through its:
- gross profit
- net profit
- assets owned by the business
- liabilities owed by the business
Without records it's hard to work out profit and loss
Control - ✔️✔️- tracks trade receivables and trade payables
- ensures business meets day-to-day expenses
- decrease chances of getting into debts
- allows business to identify unusual activities
Recording transactions - ✔️✔️Recording all the money coming into and
going out the business (enable business to keep track of payments
received and taxes (bills) are paid)
©morren2025/2026.Year published 2026.
