Observation

Candidates’ performance in this question which was on objectives, characteristics and users of accounting information was fairly good. Though, some lose valuable marks in stating the objectives and characteristics.

Some of the expected responses were:

(a)   Cash book:

1. It is a book of original entry/subsidiary book/prime book;
2. It is used for recording transactions involving the use of cash and cheques;
3. It is used to ascertain the cash and bank balances at a point in time.

            (b)Types of ledgers used for double entry bookkeeping

1. General ledger;
2. Private ledger/Personal ledger;
3. Debtors  ledger/ Sales ledger;
4. Creditors ledger/ Purchases ledger;
5. Nominal ledger;
6. Cash book.

         (c)   Benefits of keeping accounting records in a business

   1. They are used in ascertaining the financial position of an organization;
   2. They help in decision making;
   3. They are used in evaluating the performance of an entity;
   4. They help in planning the financial activities of an entity;
   5. They assist organizations in obtaining financial assistance/assist in securing loans and grants;
   6. They are used for tax computations;
   7. They are prepared to satisfy statutory requirements;                                                              
   8. They provide information on the resources/assets of an organization;
   9. They provide information on the claims/liabilities of an organization;
   10. They serve as a check on fraudulent financial activities;
   11. They assist in inter-firm comparisons;
   12. They are used for intra-firm comparisons;
   13. They are used as basis for sharing profits/basis for the payment of dividends;
   14. They provide information for staff welfare negotiations;
   15. They provide information for investors;
   16. They are used for auditing purposes;
   17. They are used as references;
   18. They assist in the detection and correction of errors;
   19. They are used as evidence of financial transactions;
   20. They are used to derive missing accounting information.