The primary objectives of accounting are given below :
A . To maintain record of business : The main objectives of accounting is to maintain proper record of business transaction .Now-a -day the volume of transaction is so large that a human memory cannot absorb each and very transaction so it is very essential to keep proper and complete record of all business transaction . The record can be used as and when required by the person interested in the business .
B. calculation of profit or loss :
profit is a measure of the performance of an enterprise .To ascertain profit or loss made by enterprise as the end of accounting period is the next objective of accounting . for this purpose trading and profit and lose accounting is prepared
C . presentation of the financial position :
The financial portion of a business concern is shown by balance sheet . Balance sheet is a statement of assets and liabilities . the balance sheet of assets menu external liabilities shows the capital or owner's equity . It also show the solvency position of the business , if assets are more then external liabilities , it is solvent in case of reverse , it is an insolvent .
D . To help determining the tax amount :
accounting is also helpful in computation of correct liabilities relating to income tax and other taxes .
A . To maintain record of business : The main objectives of accounting is to maintain proper record of business transaction .Now-a -day the volume of transaction is so large that a human memory cannot absorb each and very transaction so it is very essential to keep proper and complete record of all business transaction . The record can be used as and when required by the person interested in the business .
B. calculation of profit or loss :
profit is a measure of the performance of an enterprise .To ascertain profit or loss made by enterprise as the end of accounting period is the next objective of accounting . for this purpose trading and profit and lose accounting is prepared
C . presentation of the financial position :
The financial portion of a business concern is shown by balance sheet . Balance sheet is a statement of assets and liabilities . the balance sheet of assets menu external liabilities shows the capital or owner's equity . It also show the solvency position of the business , if assets are more then external liabilities , it is solvent in case of reverse , it is an insolvent .
D . To help determining the tax amount :
accounting is also helpful in computation of correct liabilities relating to income tax and other taxes .
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