Uses of Accounting

Question 1

Shows if your company is having income or lost

Answer 1

Measuring the performance of the business

Question 2

Accountants use past financial performance to set realistic budgetary targets, allocate resources effectively, and ensure that the company’s financial goals align with its strategic objectives.

Answer 2

To create budget for the company

Question 3

Accounting information helps businesses make informed investment decisions, such as buying or selling stocks, bonds, or shares in a business. It also aids in evaluating the risk associated with their investment choices.

Answer 3

To make investment decisions

Question 4

Accounting provides cost data that helps in pricing decisions, cost control efforts, and identifying areas where cost reductions or process improvements are needed

Answer 4

Provides buisiness owners with information about the cost of various business information

Question 5

Accounting enables them to make choices that optimize the company’s financial performance and align with its long-term objectives.

Answer 5

To make business decisions