-Harsha Lal- ACW Accounts at Edumarz
Ans- Accounting is a language of business information. All the relevant information is transferred regarding the business, to the shareholders through accounting.
To serve the required purpose, the accounting information should comply that-
It helps in making the economic decisions,
To serve the users who rely on accounting information,
To give insights which are helpful for predicting and estimating the amount, timing and uncertainty of potential cash-flows,
The management’s ability is judged in meeting the business goals by utilizing the resources effectively,
To provide information on activities which affect the society.