Assertion (A) – Financial accounting is confined to recording of financial transactions and events in the books of account, preparation of financial statements.
Reason (R) – Financial accounting also records transactions which are of non-financial in nature.
Answers
Answer:
assertion is true and reason is false
Answer:
Assertion True
Reason False
Explanation:
Establishing the results (profit or loss) of business activities throughout the specific time and stating the financial position (balance sheet) as of a date at the conclusion of the period are the two main goals of financial accounting. The earliest branch of accounting is financial accounting, from which other areas have emerged. The only way to accomplish the goals of financial accounting is to record financial transactions in a methodical manner in accordance with a set of rules. Bookkeeping is the methodical recording of financial transactions and events in the books of accounts. However, merely keeping track of transactions is insufficient. The captured data must be categorized, analyzed, and displayed so that company outcomes and financial health may be determined.
Accounting is a service-based profession. Its purpose is to provide quantitative information on economic entities that is largely financial in character. This information is meant to be helpful in making informed decisions about various possible courses of action. In other words, accounting gathers financial data for the many users to make decisions and handle business-related concerns.
Although accounting in and of itself cannot create wealth, it can help to maintain it if the information it creates is valuable to others.
#SPJ3