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Objectives of Accountancy




                                                                                                                                                                                        
1) Recording business transactions
1)      To Record the busines Transaction
2)      To deliver the results of business
3)      To state the financial position of business
4)      To know the liquidity of business
          The business transactions are recorded in the books of account in systematic. The main objective is to keep all the records. To find the status of creditors, debtors, incomes, expeses, etc made can be reviewed by reviewing the recorded transactions.
2) The results of business
              The recorded incomes and expenses (transactions) are summersied under profit and loss account. From such account, result of business whether it is running profitably or in loss can be ascertained. The objective is to ascertain the results of business are essential one in accountancy.
3) Financial position
         The recorded assets and liabilities (transactions) are summerised under the Balance Sheet. From such statement, financial position whether strong or week is ascertained. The main objective is to evaluate the financial position of business by way of summersing them under a statement.
4) Solvency Position
         From the summerised assets and liabilities, the fund flow statement, cash flow statement, liquidity ratios, etc are prepared by which liquidity positions are ascertained. The objective is to ascertain the solvency position of business to compete it debts and owner’s equity.
5) Communication

         All summerised and interpreted financial transactions and events are communicated to final users by way of issuing Reports and statements. The main objectives are to provide communication about financial transactions to final users.

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