Objective of Accounting

Introduction
Accounting is the process of recording, classifying, summarizing, and interpreting financial transactions and events. It is essential for businesses to have accurate and reliable financial information to make informed decisions. Accounting has several objectives, and it is not limited to recording transactions and preparing financial statements.

Objectives of Accounting
There are several objectives of accounting, and some of them are as follows:

1. Recording Transactions
The primary objective of accounting is to record financial transactions accurately. It involves identifying, measuring, and recording financial transactions in the books of accounts. It is necessary to maintain a record of every transaction that takes place in the business.

2. Classifying Transactions
The second objective of accounting is to classify transactions into different categories or accounts. For instance, revenue transactions are recorded in the revenue account, and expenses are recorded in the expense account. It helps in preparing financial statements accurately.

3. Summarizing Transactions
The third objective of accounting is to summarize transactions periodically. It involves preparing trial balance, which is a summary of all the accounts in the ledger. It helps in identifying any errors or omissions in the accounting records.

4. Interpreting Financial Information
The fourth objective of accounting is to interpret financial information. It involves analyzing financial statements to understand the financial position and performance of the business. It helps in making informed decisions.

5. Planning and Controlling
The fifth objective of accounting is to assist in planning and controlling the business operations. It involves preparing budgets, forecasting financial results, and analyzing variances. It helps in managing the business efficiently.

6. Compliance with Legal Requirements
The sixth objective of accounting is to comply with legal requirements. It involves preparing financial statements in accordance with accounting standards and regulations. It helps in ensuring that the business complies with legal requirements.

Conclusion
In conclusion, accounting has several objectives, and recording transactions and preparing financial statements is just one of them. Accounting is essential for businesses to have accurate and reliable financial information to make informed decisions. It is necessary to maintain proper accounting records to achieve the objectives of accounting.

No ..,to give a true and fair view of transactions