Edumarz

Enumerate main objectives of accounting.

Facebook
WhatsApp
Twitter
LinkedIn

Solution:-

The main objectives of accounting is given below-

1• To keep systematic record of business transactions:–  The objective of the accounting is to keep complete record of all transactions .The proper record help a company to reduce the chances of mistake.

2• To calculate profit or loss :- In the accounting we keep complete record of all transactions which helps a company to find out total profit and loss of a company.  For find out profit a company use trading profit and loss to calculate profit. In the trading profit and loss account all sales, purchases, recorded.

3• To Prevent and detect errors and frauds:- The objective of accounting is to prevent and detect errors . During the year every company facing many error while recording transactions with the help of accounting a company can prevent and detect these errors.

4• To provide informations to various parties:- The other objective of accounting is to communicate and give information to various parties like banks, creditors, investors , employees etc. 


Leave a Reply