Bookkeeping mainly consists of which part of accounting process? A. Analysing B. Preparing financial statements C. Recording financial information D. Auditing the books of accounts

The correct answer is C. Recording financial information.

Bookkeeping is the process of recording and summarizing financial transactions. It is the first step in the accounting process, which also includes analyzing, preparing financial statements, and auditing the books of accounts.

Bookkeeping involves recording all financial transactions, such as sales, purchases, and expenses. This information is then used to prepare financial statements, which provide a summary of a company’s financial position and performance.

Auditing is the process of reviewing and verifying financial statements to ensure that they are accurate and complete.

Here is a brief explanation of each option:

• Option A: Analysing is the process of reviewing financial information to identify trends and patterns. This information can be used to make decisions about a company’s future.
• Option B: Preparing financial statements is the process of summarizing financial information into a report. Financial statements include the balance sheet, income statement, and cash flow statement.
• Option C: Recording financial information is the process of entering financial transactions into a bookkeeping system. This information is then used to prepare financial statements and audit the books of accounts.
• Option D: Auditing the books of accounts is the process of reviewing and verifying financial statements to ensure that they are accurate and complete.