Acca financial Accounting (FA) Study Text ac ca (FA)

3 Accounting 

records 

When the relevant document/data source has been received by the financial 

accountant he/she then needs to make a record of it in an appropriate place in 

the accounting system. However, transactions cannot simply be entered into the 

financial statements for the shareholders; there is a complex accounting 

process that has to take place before the results for the year can be 

summarised. Many controls have to be performed to prevent and detect fraud 

and error before the final results can be prepared. 

The accounting system is also used to monitor the effectiveness of the business 

and to help conclude relevant transactions (for example, many goods/services 

are sold on credit, giving the customer a number of days/months to settle their 

debt. Credit control requires information from the accounting system with regard 

to who has not settled their debts and, for that reason, who needs to be chased 

for payment). 

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