meaning and objectives of accounting class 11 pseb school

The main objectives of accounting are: To maintain a systematic record of business transactions. Accounting is used to maintain a systematic record of all the financial transactions in a book of accounts. For this, all the transactions are recorded in chronological order in Journal and then posted to principle book

MEANING AND OBJECTIVES. "OF ACCOUNTING

All human activities divided into two Categories.

Economic Activities.

Non-Economic Activities.

ECONOMIC ACTIVITIES

Economic activities are those activities, the aim of which is to earn profit by providing goods and services to society at price.
Examples:- →Teacher teaches the students in a School our college for salary.

→ Labourer gets wages for Services provided.

→ Businessman boys and sells goods to earn profit.

NON- ECONOMIC ACTIVITIES

The main motive of the non-economic activities are just to render services rather than earning profits. These activities are performed by the humans for their own cultural, religious, emotional and social Satisfaction.

Examples :- Teaching of his own son by the teacher.

→ Household activities done by the lady for her family members

→ Social an religious activities performed by the people.

MEANING OF ACCOUNTING

Accounting means identification of financial transactions and events and measuriny them team of money. Its aim is to record, Classify, summarise, interpret and communicate the business transactions in a useful manner. It inform about the resources and how thay are being utilized for the purpose of earning profit.

DEFINITION OF ACCOUNTING

Accounting is the process or work of keeping Financial accounts. In other words, It is the process of messuring processing and sharing financial and other information about business and corporations.

CHARACTERISTICS OF ACCOUNTING

1. Recording : It is an ant to record day-to-day business transactions in a systematic manner. But accounting involves the recording of only those transactions which can be expressed in money worth.
2. Classifying : It means grouping the transactions of Same nature of same account at one place.
3. Summerising : Summerising business transactions Can help a Company make future plans regarding growth, sales and profit by looking back at what was achieved previously.
4. Interpreting : It's main purpose is to present the financial data in such a manner that is easily understandable and self explanetary. ex:- bar graph, picture chart, ppt, etc.
5. Communicating : Accounting is also connected with Communicating the results of the business. The profitability of the business is communicated through profit and loss account and the financial position of the business through the Balance sheet.

OBJECTIVES OF ACCOUNTING

Objectives of Accounting can be divided into two categories :

A. Primary objectives	B. Secondary objectives
1.To Maintain Records	1. To File Tax Returns.
2.To Ascertain Profit or Loss	2.To Communicate Information to Stake Holders.
3. To Judge the financial Position. Secondary objectives	3. To Have Control over Assets of the Firm
	4. To Portray Liquidity Position
	5. To Enable Performance Budgeting
	6. To Performance Information about utilisation of scare Resources
	7. To Provide Information for Internal Reporting
	8. to Facilitate Rational Decision Making

ADVANTAGES OF ACCOUNTING

Accounting is most important for efficient running of a business. according to welsch and Anthony "A good system of accounting is a store house of valuable information." Its importance is indicated by following advantages :

1.  Human Memory is Limited : Accounting records are necessary because memory of a human being is limited. he cannot memorise so many transactions. so accounting records relieve the owner from this burden.
2.  Helpful in Determining Tax Liability : Every business man has to pay certain taxes like income tax, G.S.T.Liability for such taxes can only be determined if he has proper system of accounting records.
3. Statutory Requirements : Accounting is not only meant for owners benefits, only but he may be required to keep accounting records as per different laws relating to business. So by maintaining accounting books a business man fulfills legal requirements.
4.  Ascertainment of Profit or Loss : It helps in computation of profit or loss of a business. So owners can judge about their success or failure and they can take necessary steps for further improvements. It is only possible due to existence of proper accounting records.
5.  Ascertainment of Financial Position : Accounting records helps us in preparation of balance sheet with which we can ascertain about our financial position i.e., Assets and Liabilities which are the barometers to evaluate solvency position or financial position.
6.  Helpful in Comparative Study : If a businessman want to evaluate his performance with his competitors or with his own performance in the past, he can do so if has maintained proper accounting records.
7.   Evidence in the court : There is possibility of dispute with our suppliers, customer or any department of Government on any matter. These account books can be produced in the court as any evidence to prove out point.
8.   Helpful in Raising Funds : Bankers and other financial institutions give loan to needy businessman. But it is only possible if we satisfy them about out liquidity position. Accounting information will help in it.
9.   Helpful in Rational Decision Making : Accounting records help a businessmen to take decisions like-

Choosing most profitable product mix,

Diversification of products,

Closing the product o department,

Make or buy decision,

Renewal or replacement of machinery,

Accepting or rejecting an order,

Fixing sale price of Products.

FAQ.

Q1. What are the 10 objectives of accounting?
Ans: 10 objectives in accounting
Accurate transaction record. ...
Asset and liability tracking. ...
Business decision guidance. ...
Compliance with legal regulations. ...
Control over fraud and risk. ...
Economic data recording. ...
Financial budgeting and planning. ...
Information for financing.

Q2. What is the meaning and objective of accounting class 11 notes?
Ans: Meaning & Objectives of Accounting | Crash Course of ...
'Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof'.

Q3. What is the 5 objective of accounting?
Ans: Objectives of Accounting - 13 Core Accounting Purpose and ...
Objectives of accounting in any business are; systematically record transactions, sort and analyzing them, prepare financial statements, assessing the financial position, and aid in decision making with financial data and information about the business.

Q4. What is the meaning and objective of accounting important questions?
Ans: The main objective of accounting is to keep an organized record of financial transactions which helps the users to appreciate the day to day transactions in an organized way so as to gain knowledge about total business. To determine profit or loss of the business.

Q5. What is the meaning and objective of accounting important questions?
Ans: The main objective of accounting is to keep an organized record of financial transactions which helps the users to appreciate the day to day transactions in an organized way so as to gain knowledge about total business. To determine profit or loss of the business.

Q6. What is the full meaning of accounting?
Ans: Accounting, which is often just called "accounting," is the process of measuring, processing, and sharing financial and other information about businesses and corporations. What is accounting? Accounting is the processor keeping the accounting books of the financial transactions of the company.

More reed:- Basic Accounting Terms