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Question
What are the important objectives of accounting?
I. To maintain records of a business
II. Calculation of profit or loss
III. Depiction of financial position
IV. To make information available to various groups and users.
What are the important objectives of accounting?
I. To maintain records of a business
II. Calculation of profit or loss
III. Depiction of financial position
IV. To make information available to various groups and users.
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Solution
The correct option is D I, II, III and IV
Definition of accounting is:" Accounting is an art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results thereof"
It specifies that, accounting starts when all the business transactions are recorded. Accounting provides detailed information on financial position of the business to all the interested stake holders. The interested stake holders are creditors, lenders, customers, present and potential investors.
Definition of accounting is:
" Accounting is an art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results thereof"
It specifies that, accounting starts when all the business transactions are recorded. Accounting provides detailed information on financial position of the business to all the interested stake holders. The interested stake holders are creditors, lenders, customers, present and potential investors.
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