1financial account enables managers to know the financial state of the business 2.they are useful to government for tax purposes 3.it helps managers to know the liquidity state of the business 4useful to creditors and other financial institutions such as banks for collateral security . 5.it enables managers to know the profit or loss incurred … Read more

The matching concept is based on the fact that accounting is divided into fixed period of say 12 months.in preparing financial statements ,income/proits of a period have to be matched with expenses of the period,that is ,each period s expense has to be deducted from that period s profits.the concept of having to take into … Read more

Accounting is called the language of the business in the sense that the task of learning accounting is very similar to the task of learning a new language ,it is complicated by the fact that many words used in accounting mean almost the same but not quite the same thing as the identical words mean … Read more