Financial Accounting:

Financial Accounting: The primary objective of accounting is to ascertain profit and loss and to know about the financial position of the enterprise at the end of accounting period. 

Financial Accounting: The primary objective of accounting is to ascertain profit and loss and to know about the financial position of the enterprise at the end of accounting period. 

Objectives of Accounting The following are the main objectives of accounting : 

A. Maintaining Proper Record of Business :(The main purpose of accounting is to identify business transactions of financial nature and enter them into books of accounts. Business transactions classified as assets, liabilities, capital, revenue and expenses accordingly passed through books. The accounting records should be made properly and systematically, so that requisite information may be obtained at a glance from the books of accounts.

 V. Calculation of Profit and Loss: Accounting helps in calculating the profit and loss of business. Income statement are prepared with the help of trial balance. At the end of accounting period, we prepare trading accounts to calculate gross profit and loss. After that profit and loss account is prepared to calculate net profit or net loss. Accounting in this way is the source to evaluate the perfgrmance of the business in terms of profit. 

V3. To Show the Financial Position : At the end of accounting period, we prepare position statement. The value of assets and liabilities are shown in the balance sheet also known as position statement. The balance sheet is a statement of assets and liabilities of the business on a particular date. The assets sides of balance sheet show the position of various assets such as cash in hand, cash at bank, closing stock building furniture etc. The liabilities side shows creditors, B/R loans, outstanding etc. Balance Sheet is said to be a mirror, reflecting the true position of assets and liabilities on a particular date.

 V4. Producing Effective Control Over the Business : Accounting shows the(actual performance of the business in terms of production, sales, profit, loss, cost of production and book value of assets The actual of performance can be compared with the desired performance of the business.

To Communicate the Information to the Users :  Accounting communicates information to internal user like the officers and staff of the firm and external users like owners, the creditor, the government etc. Accounting aims to meet the information needs of the decision makers and heln them in rational decision-making.

 Functions of Accounting 1. 

To Keep Systematic Record of the Financial Activities :)The first important function of accounting is to make a systematic record of the financial activities of the business. In accounțing, business transactions are properly recorded, classified and summarised into financial statementlike the profit and loss account and the balance sheet. 

v2. To Secure the Properties of the Business:The second important function of accounting is to protect the properties of the business. By maintaining proper records of various properties of the business and providing, update information of the various properties of the. business to the management) accounting enables the management to exercise proper control over the use of the properties of the business.

(3) To Analys The Financial Results : 

Accounting Communiacat the financial results and other valuable, financial, information, to the various intrested groups. 

(4) To Meet Legal Requirements :   

Require a business concern to maintain necessary Records and submit certain financial statements or Reports. 

(5) To Prevent and Detect Errors And Frouds :