Question

Discuss any four needs of accounting​

Answer 1

Answer:

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1. Systematic Recording of Transactions

• The first objective of accounting is to record the business transactions and events by proper classification and book-keeping in proper books to show assets liabilities capital and profit and loss.

2. Determination of Profit and Loss

• Business Transactions are done for Earning Profits. Every businessman wants to know the results of transactions done in a specific period. For these, we prepare a profit and loss account.

3. Providing Necessary information to Financial institution

• If a Businessman Requires money from the financial institution, Much More information Regarding business is to be given to these institutions. Such as previous years’ Sells, stock position, profitability, and financial position.

4. Providing information to Interested Parties

• One of the objects of Accounting is to provide information to creditors, employees, present and future investors, Researchers, and Society.The interest of the loan givers and the investors is in the Safety of their investment and in getting interested and Dividend the interest of the Employees lies in their wages bonus and permanency.

Answer 2

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1. Systematic Recording of Transactions

• The first objective of accounting is to record the business transactions and events by proper classification and book-keeping in proper books to show assets liabilities capital and profit and loss.

2. Determination of Profit and Loss

• Business Transactions are done for Earning Profits. Every businessman wants to know the results of transactions done in a specific period. For these, we prepare a profit and loss account.

3. Providing Necessary information to Financial institution

• If a Businessman Requires money from the financial institution, Much More information Regarding business is to be given to these institutions. Such as previous years’ Sells, stock position, profitability, and financial position.

4. Providing information to Interested Parties

• One of the objects of Accounting is to provide information to creditors, employees, present and future investors, Researchers, and Society.The interest of the loan givers and the investors is in the Safety of their investment and in getting interested and Dividend the interest of the Employees lies in their wages bonus and permanency.