Thomas is an entertainer for children's parties. He runs the business and works the parties himself; he has no debts so the finances are simple. What is the minimum that needs to be documented in his accounting?

Question

• assets, investments, and equity
• income, investments, and taxes
• equity, investments, and assets
• income, expenses, and taxes

Answer 1

The minimum that needs to be documented in Thomas's accounting are income, expenses, and taxes. This will allow him to track the money coming in from his parties, the money going out for expenses, and calculate and pay any necessary taxes. Assets, investments, and equity may not be as important for a small business like Thomas's that does not have debts.