MAIN Objectives of Accounting

MAIN Objectives of  Accounting 

Maintening Proper Records of Business :. 
The main purpose of accounting is to identify business transections of financial natur and enter them into nature and enter them into books of accounts business transection classified as assets, liabilities, capital revenue, and expenses accordingly passed through books .

To show the Financial position : 

Balance sheet is a statement of assets and liabilities of the business on purticulae date . The assets side of balance sheet show the position of various assets such as cash in hand chash at bank, closing stock building furnitur . The liability sirsa shows the creditors, b/r, louns, outstanding, etc.

Producing Effective Control Over The Business
Accounting shows the actual performance of business in terms of production, sales, profit, loss, cost of production and Book value of assets. 

To communicate the information to the users : 
 Accounting communicates information to internal user like the officer and staff of the firm and external users like owner, creditor the book value. 

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