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INTRODUCTION TO BOOK-KEEPING

CONTENT
  1. Meaning of Book-keeping
  2. Importance of Book-keeping and Parties Interested in Book-keeping
  3. Essential Qualities of a Book-keeper
  4. Common Book-keeping Practices

Meaning of Book-keeping

Book-keeping may be defined as the art of recording business transactions in a systematic manner so that the books of account will reveal at any time the financial position of the business to the owner and other stakeholders in the business

Importance of Book-keeping

Every business organization keeps daily records of their financial transactions. Therefore, the importance of bookkeeping becomes necessary for the following reasons:
  1. It is for easy reference of business financial records.
  2. It shows an accurate standing position of business in relation to its customers i.e. what is owed and what is owed by the firm
  3. It reveals profits and losses position to the company through trading, profit and loss account.
  4. It provides information to members of the public who are interested in the business through the balance sheet.
  5. Auditors use the books to issue their audit reports.
  6. The records kept help in management decision-making.
  7. The records project the image of the business to the public.
  8. It is a means by which finances of a business can be controlled.

Lesson tags: Business Studies Lesson Notes, Business Studies Objective Questions, JSS1 Business Studies, JSS1 Business Studies Evaluation Questions, JSS1 Business Studies Evaluation Questions Second Term, JSS1 Business Studies Objective Questions, JSS1 Business Studies Objective Questions Second Term, JSS1 Business Studies Second Term
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