Question

List the various accounting activities that an organisation under takes and give reasons for each
as to why that particular activity is performed in the organisations.
1. …………………………………….    1. ……………………………………….
2. ……………………………………..    2. …………………………………………
3. ………………………………………    3. ………………………………………..
4. ……………………………………… 4. ………………………………………
5. ……………………………………… 5. ………………………………………
6. ……………………………………… 6. ……………………………………….

Answer 1

1) Income Transactions: These transactions record expected income, known as “accounts receivable.”

2) Payroll: Payroll is an important accounting activity as it ensure all employees are paid accurately and timely

3) Financial Controls – Financial controls include various accounting reconciliations with view toward compliance, theft and fraud prevention.

4) Profit or Loss: It helps in determining whether the company turned a profit or not

5) Accounts Payable: For maintaining good relationships with vendors to ensure that everyone gets paid on time is a vital role

6) Bookkeeping: All organizations must file year end taxes with the federal government, based upon the fiscal year.