Question

The process of accounting starts with _______ and ends with_______.

• A. Classifying, Recording
• B. Identifying the transaction, Communicating the information
• C. Financial account, Journal
• D. Recording, Classifying

Answer 1

The correct option is B Identifying the transaction, Communicating the information

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.