Question 15 of 34beginner🧠 RememberShort Answer3 marks

Enumerate main objectives of accounting.

Correct Answer

The main objectives of accounting are:

1. Maintain records of business: Accounting helps in keeping a systematic record of all business transactions, which is essential for any enterprise to track its day-to-day activities.

2. Calculate profit or loss: Accounting enables the determination of the financial result of business operations by preparing the profit and loss account, showing whether the business has earned profit or incurred loss.

3. Depict the financial position: Through the balance sheet, accounting presents the financial position of the business at a particular point in time, showing assets, liabilities and capital.

4. Make information available to various groups and users: Accounting serves as an information system that provides useful financial information to both internal and external users for decision-making purposes.

Exercise: Questions for Practice - Short Answers | Q: 3 | (Page 22)
For More Understanding

Explanation

The answer is directly sourced from the NCERT textbook content which clearly lists the four primary objectives of accounting. For a 3-mark question, students should enumerate all four objectives with brief explanations. The key terms are highlighted as per exam formatting requirements.

Solution Steps

  1. Step 1: Identify the four main objectives from the textbook context

  2. Step 2: Write each objective with a brief explanation

  3. Step 3: Ensure proper formatting with bold key terms and paragraph breaks

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