Final answer:
A business must record transactions accurately and transparently to account for bona fide business transactions. By following these practices, businesses can maintain transparency and ethical financial reporting.
Step-by-step explanation:
A business is an organization that engages in selling goods and services with the intent to make a profit. To ensure transparency in accounting for bona fide business transactions, businesses follow certain practices:
- Recording all transactions accurately and in a transparent manner.
- Following Generally Accepted Accounting Principles (GAAP).
- Implementing internal controls to prevent fraud and errors.
- Regularly reviewing financial statements and disclosures.
By following these practices, businesses can maintain transparency in their accounting procedures and demonstrate their commitment to ethical and accurate financial reporting.