Objective of Accounting.
Objective of Accounting :- The objectives of accounting can be given as follows: 1. Systematic recording of transactions – Basic objective of accounting is to systematically record the aspects of business transactions i.e. book-keeping. These recorded transactions are later on classi ed and summarized logically for the preparation of nancial statements and for their analysis and interpretation. 2 . Ascertainment of results of above recorded transactions – Accountant prepares pro t and loss account to know the results of business operations for a particular period of time. If revenue exceed expenses then it is said that business is running pro tably but if expenses exceed revenue then it can be said that business is running under loss. The pro t and loss account helps the management and di erent stakeholders in taking rational decisions. For example, if business is not proved to be remunerative or pro table, the caus...