-Harsha Lal- ACW Accounts at Edumarz
Answer- The main objectives of accounting are-
To maintain a systematic record of business transactions– In Accounting all the financial transactions are accounted for in the books of accounts. For this purpose all the transactions are firstly recorded in the journal and then posted in the ledger.
To ascertain the profit and loss– Every businessman needs to know whether he has earned profit or loss at the end of the accounting year. To ensure that he prepares the profit & loss accounts.
To ascertain the financial position– The businessman also wants to know how many assets and liabilities he has at the end of the year, for ascertaining his financial position. For that purpose he prepares the Balance Sheet.
To provide information to various users-One of the most important objective of accounting is to communicate the accounting information to the interested users . So that they can make good financial decisions.