Question

Brenda has been asked by her mom to do the accounting of her small business. To start, Brenda needs to determine which accounting system to use. Her primary goal in choosing a system is to find one that is easy to learn since she's new to accounting. Which system would be best for Brenda to use?

1) Single-entry
2) Double-entry
3) Cash accounting
4) Forensic accounting

Answer 1

For someone new to accounting like Brenda, single-entry (option 1) accounting would be the best system to use for its simplicity and ease of understanding.

Step-by-step explanation:

Brenda is exploring options for an accounting system for her mom's small business that is easy to learn. Among the systems mentioned, single-entry accounting is typically the simplest and most straightforward method, particularly for individuals new to accounting.

This system records only one entry for each transaction, making it less complex than double-entry accounting, which requires two entries per transaction and a greater understanding of accounting principles. Cash accounting might also be an appealing option, as it records transactions only when cash changes hands, which can be easier to follow for a small business with straightforward cash inflows and outflows.

In contrast, forensic accounting is a specialized field suitable for investigating financial discrepancies and fraud, and thus, is not appropriate for day-to-day business accounting needs.