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Deepak

The document outlines the main objectives of accounting, which include calculating profit or loss, assessing the financial position through balance sheets, and providing information to various stakeholders. It emphasizes the importance of bookkeeping as the foundation of accounting, which involves recording, classifying, summarizing, and communicating financial information. Additionally, it mentions specialized branches of accounting, such as financial and tax accounting, to meet management requirements.

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anshteotia7
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5 views1 page

Deepak

The document outlines the main objectives of accounting, which include calculating profit or loss, assessing the financial position through balance sheets, and providing information to various stakeholders. It emphasizes the importance of bookkeeping as the foundation of accounting, which involves recording, classifying, summarizing, and communicating financial information. Additionally, it mentions specialized branches of accounting, such as financial and tax accounting, to meet management requirements.

Uploaded by

anshteotia7
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

To calculate profit or loss the second main objective of accounting is to as


certain the profit or loss suffered on account of business transaction
during a particular period. For
this purpose trading and profit & AID of the business is prepared at the
end of each .
2. To ascertain the financial position of the business the businessman must
also know about the financial health of the business . For this purpose ,
after preparing the profit & loss account a statement called the balance
sheet is prepared . This values on one side and the liabilities and capital
other side .
3. To provide information to various parties another main objective to various
of is to communicate the accounting to various interested parties like
owners investors , creditors bank ,employees like owners , employees and
govt Authorities etc .
4. Book keeping > Book keeping is an art of recording transaction that
results in the
transfer of money or money worth .
5. Accounting starts books keeping and it includes the following activities .
6. Summarizing the classified transaction
7. Analysing and interpreting the summarized result .
8. Communicating the information to the interested parties .
9. Accounting process recording classifying summarizing an communication .
[Link] of accounting to meet the in requirement of
management ,various specialised
branch of accounting have come into existence such as financial
accounting , tax accounting social responsibility accounting etc
[Link] accounting the main of this branch of accounting is to record the
manner to ascertain the profit or loss of accounting period the profit or
loss and account and to present the financial position balance sheet .

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