Maintenance of Records of Business Transactions

  • Accounting is used for the maintenance of a systematic record of all financial transactions in book of accounts.
  • Even the most brilliant executive or manager cannot accurately remember the numerous amount of varied transactions such as purchases, sales, receipts, payments, etc. that takes place in business everyday.
  • Hence, a proper and complete records of all business transactions are kept regularly.
  • Moreover, the recorded information enables verifiability and acts as an evidence.