Functions of Accounting

Accounting is a process of recording, classifying, summarizing, and interpreting financial transactions to provide useful information for decision-making. The functions of accounting are:

1. Measurement: The primary function of accounting is to measure and record financial transactions accurately. This involves identifying, measuring, and recording all financial transactions that occur during a specific period.

2. Recording: Accounting involves recording financial transactions in a systematic and organized manner. This helps in maintaining proper records for future reference.

3. Classification: Accounting involves classifying financial transactions into different categories such as assets, liabilities, revenues, and expenses. This helps in the preparation of financial statements.

4. Summarization: Accounting involves summarizing financial transactions into meaningful information. This helps in the preparation of financial statements such as the balance sheet, income statement, and cash flow statement.

5. Analysis: Accounting involves analyzing financial information to provide useful insights into the financial performance of an organization. This helps in decision-making and planning for the future.

6. Forecasting: Accounting involves using financial information to make forecasts and projections about the future financial performance of an organization. This helps in planning for the future and making informed decisions.

7. Decision-making: Accounting provides useful information for decision-making. This helps in making informed decisions about investments, expansion, and other business activities.

8. Communication: Accounting involves communicating financial information to stakeholders such as investors, creditors, and management. This helps in ensuring transparency and accountability in financial reporting.

Answer:

The correct answer is option 'D', Ledger posting. Ledger posting is a part of the recording function of accounting. It involves posting financial transactions to the ledger accounts. It is not a separate function of accounting on its own.