Answer to Question #99291 in Economics for trushang

Question

Mr. Shil Wants to record the financial transactions of his newly started business.
Discuss what accounting steps/stages he need to adhere so that the transactions can be duly
recorded and processed in order to prepare the financial statements.

Answer 1

To succeed in business, Mr. Shir must take the following accounting steps into consideration:

He must record:

-      Assets

-      Liabilities

-      Equity

-      Revenue

-      Expenses

As a beginner, the above steps will help him monitor costs. Additionally, it will be easy for him to calculate profit by Lessing the cost of sales from the total ales. Additionally, those are the five core elements of a financial statement