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how we can apply sample accounting to daily life - Essay Example
Author : haleyselena
Finance & Accounting
Pages 3 (753 words)
Application of Simple Accounting to Daily Life Name Institution Date Application of Simple Accounting to Daily Life Accounting is vital in ensuring a person is at the helm of making positive approach in regards to finances and future plans. Since time immemorial, businesses have indulged in simple accounting to note developments, setbacks and how various situations will be managed…
A person uses accounting techniques to make decisions on which investment is worthwhile. Similarly, the person will be able to make decisions on which investment should be ditched. For example, some investments could be attractive but need some accounting knowledge to consider the whole situation. Some investments could look lucrative but the related expenses and risks are threatening. However, some ventures seem to have low income as well as low risks. With the use of simple accounting, a person will be prepared to make a decision on the available alternatives (Juan, 2007). Consequentially, when a person does not use simple accounting, it is easy to lose substantial amounts of money in unreliable ventures. Similarly, simple accounting is effective in management of business and personal activities. With simple accounting a person is able to note the income and expenditure of their business or life in general. With such focus, the person is able to manage the expenditure and income on the basis of priority. Simple accounting is vital in making decisions in regards cutting of costs. A person could be in a stalemate over some expenditure that is affecting their business or personal life (Freedman, 2010). To limit such expenses, a person needs to use simple accounting. ...