Question

very short answer questions what are the two main objectives of accounting?​

Answer 1

Answer:

Accounting is the systematic recording of financial transactions in the book of records in order to fulfill certain objectives.

The basic objectives being- i)To analyse the financial position of a business.

ii)Control over assets and liabilities.

Explanation:

i)When we keep a record of financial transactions, we happen to understand that what exactly is the status of our resources and how well are we utilising it. Without any financial recording or accounting we will never understand the profit earned or losses incurred by business on an overall basis.

ii)For running a business successfully a businessman is to acquire various assets like land, building, machinery, etc.  He is to face various debts and liabilities like accounts payable, notes payable, loan, bank overdraft, etc. side by side with die acquisition of assets.  The actual position of these debts-liabilities, property, and assets can be ascertained through the proper keeping of accounts.  A businessman can take the right steps for controlling the quantity of assets decrease and liability increase.