As you study accounting it is important to know that, while you may not be an accountant, understanding how accounting information is used in making decisions will make you better able to contribute in a business setting.
You and your business partner have just launched your own company. Business is going very well, and the two of you are now trying to make decisions about marketing and production and accounting. Regarding accounting, your partner has expressed the opinion that the company has little need for gathering financial information about what has happened in the past—the company needs to be focused on the future.
State at least two reasons a company needs information about past business transactions and how these support future business decisions.
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