The timing and frequency of business transactions will vary. Some, such as sales, may take place on a daily basis whilst others, such as salary payment, are paid monthly. Items such as electricity and gas bills may be paid on a quarterly basis. Purchases of equipment will probably be occasional, but infrequent.
Whenever transactions occur they should be promptly recorded in the accounting records on the day that they occur. This is important in order to ensure that the business records are complete and up to date. It is also necessary, as you will see in your later studies, to ensure that the annual financial statements show a true and fair view of the business to management, owners and other interested parties, such as banks and providers of finance.
The manager of the research and development department of a large chemical business has been given control of the investigation of the potential healing properties of a naturally occurring compound found in the Amazonian rainforest.
For a suggested answer, see the Answers section at the end of the book