Purposes of Accounting 3.0 / 5 based on 1 rating ? AccountingUnit 1 Chapter 1 - Purposes of AccountingASAQA Created by: JordanVDFCreated on: 01-08-15 14:09 892436715 Across 1. the value of resources used by the business in acquiring goods and services (11) 5. calculates a business's net profit by deducting the expenses of running the business from gross profit. Net profit = gross profit - expenses (6, 3, 4, 7) 6. the value of resources received AND receivable in the course of business (6) 9. to create cash budgets, projected trading and profit and loss accounts and balance sheets (11) Down 2. principally to enable HM Revenue and Customs to collect all amounts due in respect of taxes (1, 5, 11) 3. the ability of a business to access sufficient cash resources to pay its short term liabilities (9) 4. a statement detailing all of the assets and liabilities of a business. (7, 5) 7. calculates gross profit make on sales by comparing sales with the cost of sales. (7, 7) 8. accurate accounting records allow owners and managers to monitor what has happened, compare it to forecasts and take corrective action if needed. MONITOR COMPARE FORECAST ACTION (10, 3, 7)
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