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Write short note on sources of accounting information


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User Arata
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Answer:

There are various sources of accounting information, which are as follows:

1. Financial transactions: The primary source of accounting information is financial transactions such as sales, purchases, payments, receipts, and other financial activities of the business.

2. Accounting records: Accounting records such as journals, ledgers, trial balance, and financial statements are also the sources of accounting information.

3. Bank statements: Bank statements are a primary source of accounting information, as they provide information on bank balances, cash inflows, and outflows.

4. Invoices and bills: Invoices, bills, and receipts provide information on purchases and sales made by the business.

5. Management reports: Internal management reports, such as budgets, variance analysis, and performance reports, provide valuable information on the financial performance of the business.

6. Tax returns: Tax returns provide information on the business's tax obligations and payments.

7. Shareholder reports: Shareholder reports provide information on the financial performance of a company to its shareholders.

Overall, these sources of accounting information provide valuable information on the financial performance of a business, and they play a crucial role in decision-making, performance evaluation, and financial planning.

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User Nickik
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