Objective of Accountancy
Understand the Problem
The question is asking about the purpose or goals of accountancy, which may include aspects like financial reporting, analysis, compliance, and decision-making support.
Answer
To maintain records of transactions and prepare financial reports.
The primary objectives of accounting are to maintain a systematic record of financial transactions and prepare financial reports to assess the financial position of the business.
Answer for screen readers
The primary objectives of accounting are to maintain a systematic record of financial transactions and prepare financial reports to assess the financial position of the business.
More Information
Accountancy aims to systematically record business transactions and convey financial information to users, ensuring informed decision-making.
Tips
A common mistake is to confuse the objectives of accountancy with other financial functions or objectives, like budgeting or auditing. Focus specifically on recording and reporting objectives.
Sources
- Objectives of Accounting - Unacademy - unacademy.com
- Objectives of Financial Accounting - Investopedia - investopedia.com
- What is the basic objective of accounting? - BYJU'S - byjus.com
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