Question

Accounting involves -
(I) Recording
(II) Classifying
(III) Summarizing
Select the correct answer from the options given below:

• A. (I)
• B. (I) & (III)
• C. (I) & (II)
• D. All of the above are correct

Answer 1

The correct option is D All of the above are correct

Accounting starts with

-identifying a transaction and then recording in Journal

-then classifying in the ledger

-then summarising in final accounts

-then interpretation through Ratio analysis

-then finally communicating the information to the users of the financial statement.

Thus, the first step is identifying and the last step is communicating the information.