The following are the important objectives of accounting.
1.Keeping of records of business transactions.
2. Ascertainment of Profit or Loss.
3. Ascertainment of financial position of business enterprises.
4. Providing meaningful information to different groups of people having interest in the business.
1. Keeping of records of business transaction:
The main purpose of accounting is to identify business transactions of financial nature and enter into appropriate books of accounts. The accounting records should be made properly and systematically, so that requisite information may be obtained at a glance.
2. Ascertainment of Profit or Loss:
The result of business (Profit or Loss) is available from the statement prepared for ascertaining it, called the Profit and Loss Account.
3. Ascertainment of financial position:
At the end of an‘ accounting year, a position statement known as the ‘Balance Sheet’ is prepared. The value of assets and liabilities are depicted in the Balance Sheet. The Balance sheet gives a true and fair view of the state of affairs of the concern.
4. Providing meaningful information to different groups of people having interest in the business:
Accounting records provide meaningful information to different groups of people having interest in the business.
