Answer: The 2 objectives of accounting are - Maintaining a systematic record of all financial transactions and preparing financial reports to access the financial position of the business organisation......
The objectives of accounting can vary depending on the context and the specific needs of an organization. However, some common objectives of accounting include:
1. Recording and reporting financial transactions: Accounting aims to accurately record all financial transactions of a business or organization. This includes tracking income, expenses, assets, liabilities, and equity.
2. Providing financial information: Accounting provides relevant and reliable financial information to stakeholders, such as investors, creditors, managers, and government authorities. This information helps in making informed decisions, assessing the financial health of a company, and evaluating performance.
3. Facilitating decision-making: Accounting information assists in making various financial decisions, such as investment choices, pricing strategies, budgeting, and resource allocation. It helps management and stakeholders to evaluate the financial consequences and risks associated with different options.
4. Ensuring compliance: Accounting plays a vital role in ensuring compliance with applicable laws, regulations, and accounting standards. It helps businesses prepare accurate financial statements, meet tax obligations, and fulfill reporting requirements.
5. Assessing performance and profitability: Accounting helps in evaluating the financial performance and profitability of a company over a period of time. It involves analyzing financial ratios, trends, and other metrics to assess the efficiency, liquidity, solvency, and profitability of the organization.
6. Supporting planning and control: Accounting information aids in the process of planning, budgeting, and controlling the financial resources of a business. It assists in setting financial goals, monitoring actual performance, and identifying areas of improvement or potential risks.
7. Facilitating communication: Accounting provides a common language of financial information that enables communication and understanding between different stakeholders, such as investors, creditors, employees, and managers. This promotes transparency and accountability within an organization.
These objectives help organizations to effectively manage their financial resources, make informed decisions, comply with regulations, and communicate financial information to stakeholders.
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Answer: The 2 objectives of accounting are - Maintaining a systematic record of all financial transactions and preparing financial reports to access the financial position of the business organisation......
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The objectives of accounting can vary depending on the context and the specific needs of an organization. However, some common objectives of accounting include:
1. Recording and reporting financial transactions: Accounting aims to accurately record all financial transactions of a business or organization. This includes tracking income, expenses, assets, liabilities, and equity.
2. Providing financial information: Accounting provides relevant and reliable financial information to stakeholders, such as investors, creditors, managers, and government authorities. This information helps in making informed decisions, assessing the financial health of a company, and evaluating performance.
3. Facilitating decision-making: Accounting information assists in making various financial decisions, such as investment choices, pricing strategies, budgeting, and resource allocation. It helps management and stakeholders to evaluate the financial consequences and risks associated with different options.
4. Ensuring compliance: Accounting plays a vital role in ensuring compliance with applicable laws, regulations, and accounting standards. It helps businesses prepare accurate financial statements, meet tax obligations, and fulfill reporting requirements.
5. Assessing performance and profitability: Accounting helps in evaluating the financial performance and profitability of a company over a period of time. It involves analyzing financial ratios, trends, and other metrics to assess the efficiency, liquidity, solvency, and profitability of the organization.
6. Supporting planning and control: Accounting information aids in the process of planning, budgeting, and controlling the financial resources of a business. It assists in setting financial goals, monitoring actual performance, and identifying areas of improvement or potential risks.
7. Facilitating communication: Accounting provides a common language of financial information that enables communication and understanding between different stakeholders, such as investors, creditors, employees, and managers. This promotes transparency and accountability within an organization.
These objectives help organizations to effectively manage their financial resources, make informed decisions, comply with regulations, and communicate financial information to stakeholders.