Final answer:
The correct answer is option d. All the options listed, a check register, an expense account, and a chart of accounts, are key reports that a new business owner should be prepared to generate. Each report serves a distinct role in managing the business's financial affairs, which is critical for developing and sticking to a budget.
Step-by-step explanation:
When it comes to maintaining the financial health of a new business, generating key financial reports is essential. Among the listed options, the correct answer is d. all of the answers are correct. Each report serves a distinct purpose in financial management and accounting:
- A check register helps in tracking all the checks written, ensuring that there is a record of expenses and that the business does not overdraw its bank account.
- An expense account is crucial for tracking specific business expenditures, allowing the owner to monitor and control costs and to ensure that money is being spent wisely.
- A chart of accounts is a listing of all the accounts in the general ledger, which is the backbone of a business's financial recording system, making it possible to organize financial transactions systematically and generate accurate financial statements.
Creating and adhering to a budget is key to ensuring that a business has enough income to cover its monthly expenses, and these reports collectively provide the information necessary to inform budgeting decisions.