1) How does financial information reported in accounting system facilitate decision making?

Question

1) How does financial information reported in accounting system facilitate decision making?
(2) How are the records related to each other in general journal& general ledger? in control account & subsidiary accounts?

Answer 1

1)Financial information is recorded in various financial statements. This information can be compared to past performance or used to estimate future performance. You can compare many things such as debt to equity. All FS are based on the same rules so that FS's from one company can be compared to others in the same industry. All this information can be gathered and used to make toward more informed decision making.
2) A general journal is a record of individual journal entries. These entries move amounts from one account to another. A general ledger lists each account starting balance for a period, each individual transaction, and an ending balance. A control ledger is the main ledger such as Accounts Receivable. The subsidiary accounts list specific transactions such as A/R ledger debit $300, income credit $300. Subsidiary Ledger for A/R Mrs. Jones owes $150, Mr. Johnson $50, Miss Abernathy $100.

If you can't figure this out--you are going to flunk.