Mention any six function/Objectives of accounting. |
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| Ans : The following are the three function of accounting:-
a. To keep complete and systematic record:-The first objective of accounting is to keep the systematic and completed record of financial transactions as per rules and principles in accounting.
b. To ascertain profit or loss:-The second objective of accounting is to ascertain Profit of loss of the Business by preparing trading and profit and loss account of the business at the certain period of time.
c. To depict the financial position:-It prepares a balance sheet at the end of every year, which informs about its position of assets, liabilities and capital, when reflect economic strength and weakness of business.
d. To provide information to various users:-It provides financial information such as profit or loss, financial position, cash flow position and other informations to managers, investors, government authorities etc.
e. To analyses and interpret financial information:-With the help of accounting, the parties or users concerned in the business can have full information about its profitability and financial position to make the financial decision.
f. To help determining the tax liability:-Business has to pay different types of tax to the government. Accounting provides financial information to the tax authorities to determine tax liability.
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