chapter  3
8 Pages

The use of accounting records

Whatever the way in which an organization uses money, it will need to record the transactions as proof of how it has used the money for all those interested in its operations.

Accounting records are kept by individuals, businesses, clubs, charities and non-profit organizations in order to monitor their financial positions. Accounting is the common language of business because it is used to describe the financial dealings of every kind of organization. Accounts are prepared from accounting records using the principles of accounting. We’ve just examined the way in which money serves a variety of purposes we can look at accounting records, accounting and accounts in the same way.