FABM 1

The process of recording financial transactions pertaining to a business.

• Accounting

• Business

• Mathematics

• Economics

This can also be referred to as book-keeping which is a process of recognizing the transactions and setting them up as records.

• Recording

• Summarizing

• Reporting

• Analyzing

The accountants divide these raw data into several categories.

• Recording

• Summarizing

• Reporting

• Analyzing

The owners must know about the various operations happening within the firm using their money. And this is done by this activity.

• Recording

• Summarizing

• Reporting

• Analyzing

Checking for the positive and negative points and to draw conclusions.

• Recording

• Summarizing

• Reporting

• Analyzing

They use the financial information to know the trends and recent developments in the prosperity of the enterprise and the range of its activities.

• Public

• Tax Authorities

• Suppliers

• Employees

• Creditors

Determines the credibility of the tax returns filed on behalf of the company. They are interested to know if the business paid the correct amount of taxes.

• Public

• Tax Authorities

• Suppliers

• Employees

• Creditors

They use the financial information to determine whether the debts owed to them will be paid when due or whether the customer has enough funds or resources to pay the goods to be delivered or the services to be rendered.

• Public

• Tax Authorities

• Suppliers

• Employees

• Creditors

Assess the companyís profitability and stability, its consequence on their future salary and job security.

• Public

• Tax Authorities

• Suppliers

• Employees

• Creditors

They have interest in information about the continuance of an enterprise, especially when they have a long-term involvement with, or are dependent on, the enterprise.

• Public

• Tax Authorities

• Suppliers

• Employees

• Creditors