1.

What is accounting and its uses​

Answer»

Explanation:

The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and CASH flows of a business. This information is then used to reach DECISIONS about how to manage the business, or invest in it, or lend money to it. This information is accumulated in accounting records with accounting transactions, which are recorded either through such standardized business transactions as customer invoicing or supplier invoices, or through more specialized transactions, known as JOURNAL entries.

Once this financial information has been stored in the accounting records, it is usually compiled into financial statements, which include the following documents:

Income statement

Balance sheet

Statement of cash flows

Statement of retained earnings

Disclosures that accompany the financial statements.

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