1.
Accounting is what creates or splits the organization, and the management would be given a
good accounting framework with the tools or procedures to make successful business decisions
Accountancy is very essential to the economic system because it is a metric that can give an
indication of how the economy performs. The areas that need improvement will be identified.
Accounting information is used by any company and person in society. Company, government
departments and creditors continue using the accounting information to function efficiently and
effectively.
2.
Stage 1. First stage of the process is defining and evaluating transactions. It takes data
from primary sources or operations and converts it into useful financial information. An
original source is a detectable data record that contributes to a business transaction
being created. A sales invoice, for instance, is called an original source. Activities would
include the payment of an employee, the distribution of merchandise, the provision of a
service, the accumulation of cash, the borrowing of capital, and the issue of stock to the
owners of the company. The organization will examine the details after the initial source
