Question

Which one of the following is not a main objective of accounting?
(a) Systematic recording of transactions
(b) Ascertainment of the profitability of the business
(c) Ascertainment of the financial position of the business
(d) Solving tax disputes with tax authorities

Answer 1

Answer:4

Explanation:

Answer 2

Solving tax disputes with tax authorities is not the main objective of accounting. (Option d)

• Accounting includes recording the business-related activities of an enterprise to keep a record of every transaction.
• It helps in identifying, comparing, and using this recorded information to identify the place in the industry and the profitability of a company.
• From the various statements created, the amount of tax that is to be paid by the company can be obtained but disputes cannot be solved.