What is bookkeeping? The process of creating a business plan, recording financial transactions, marketing a business, or managing employees?

Step 1: Question 1 - What is the purpose of preparing a business plan? A business plan serves to outline business goals, strategies, market analysis, operations, and financial forecasts. It guides management and helps secure funding or partners. Among the options, B is closest as it references preparing the plan and financial records, which aligns with key components. Answer: B Step 2: Question 2 - What is the purpose of bookkeeping? Bookkeeping is the systematic recording of all financial transactions of a business in a structured manner (e.g., journals, ledgers) to track income, expenses, assets, and liabilities for accurate financial reporting. Answer: D (To record financial transactions) Step 3: Question 3 - Which of the following is an example of an asset? An asset is something of value owned by the business. Money owed to suppliers is a liability (accounts payable). Equipment owned by the business is a fixed asset. Answer: C