Enumerate Main objectives of Accounting - Bzziii

Enumerate main objectives of accounting.

The main objectives of accounting are describe as below-

1. Maintenance of Records of Business transaction. 
2. Calculation of profit and Loss. 
3. Depiction of financial position. 
4. Providing Accounting information the users or it's owners.

(a) Maintenance of Records of Business transaction : Maintenance of records include the records of sales, purchases, expenses, cash, banking, etc.

(b) Calculation of profit and Loss : 

A profit and loss statement is calculated by totaling all of a business’s revenue sources and subtracting from that all the business’s expenses that are related to revenue.

Profit/Loss = Total Business Revenue - Total Business Expenses

(c) Depiction of financial position :

The statement of financial position also known as a Balance Sheet represents the Assets, Liabilities and Equity of a business during a time period. 

Example: Assets include cash, stock, property.

(d) Providing Accounting information the users or it's owners :

There are two types of User of Accounting information they are -

1. External users,
2. Internal users.

External user : External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists.

Internal user : Internal users are owners, directors, managers, employees of the company.

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Introduction to Accounting
Class 11-Accountancy