The correct answer is: Book-keeping.
Book-keeping is the process of recording and classifying financial transactions. It is the first step in the accounting process, and it is essential for businesses to keep track of their financial information.
Book-keeping involves recording all financial transactions in a journal, which is a chronological record of all income and expenses. The journal entries are then transferred to a ledger, which is a more detailed record of the financial transactions.
Book-keeping is important because it allows businesses to track their financial performance, identify trends, and make informed decisions about their finances. It is also required by law for businesses to keep accurate records of their financial transactions.
The other options are incorrect because:
- Accounting is the process of analyzing, interpreting, and reporting financial information. It is a more complex process than book-keeping, and it involves preparing financial statements, such as the income statement and balance sheet.
- Adjustment is the process of updating financial records to reflect changes in the value of assets or liabilities. It is a necessary part of the accounting process, and it is typically done at the end of each accounting period.
- Measurement is the process of determining the value of assets, liabilities, and equity. It is an important part of the accounting process, and it is used to prepare financial statements.