Recording of financial transactions is known as ________.
b. Financial accounting
c. Managerial accounting
d. Tax accounting
Explanation: Bookkeeping is the process of recording financial transactions. Transactions include purchases, sales, receipts, and payments. The purpose of bookkeeping is to provide a record of all financial activity, which can be used to make business decisions.
Good bookkeeping is essential for any business. It provides a clear picture of the company’s financial health and can help make informed decisions about where to allocate resources. Bookkeeping also helps to identify trends and spot potential problems early.
Bookkeeping is not a difficult task, but it does require some care and attention. The most important thing is to keep accurate records. This means recording transactions as soon as they occur and keeping all documentation in order.