Question

Which of the following are general objectives of accounting?
I. Maintenance of Accounting Records
II. Providing Information
III. Ascertainment of Profit or Loss
IV. Depiction of Financial Position

• A. I and II
• B. III and IV
• C. I and IV
• D. I, II, III and IV

Answer 1

Answer: (D)

Accounting is the measurement,processing and communication of financial information about economic entities such as business and corporations. Accounting consists of various objectives. They are as follows:

1. Maintenance of Accounting records;
2. Providing information;
3. Ascertainment pf profit and loss;
4. Depiction of financial position.
5. With all these objectives one can carry out all the accounting process very effectively.