Question

What is accounting? Explain it's main objectives?

Answer 1

Accounting is the language of business transactions. It's main objective of accounting is to maintain 'a full and systematic record of all business transactions.

Answer 2

Accounting is the process of identifying, recording, classifying, summarising, interpreting and communicating financial information to the users for judgement and decision making.

# Objective of accounting :-

1. To maintain systematic records of financial transactions.

2. To ascertain net profit and net loss of the business.

3. To ascertain the financial position of the business.

4. To provide accounting information to some interested parties.