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Purposes of an accounting system include all the following except
- a)Interpret and record the effects of business transaction.
- b)Classify the effects of transaction to facilitate the preparation of reports.
- c)Summarize and communicate information to decision makers.
- d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.
Correct answer is option 'D'. Can you explain this answer?
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Purposes of an accounting system include all the following excepta)Int...
Purpose of Accounting System
The purpose of an accounting system is to record, classify, summarize and communicate financial information of an organization. It helps in providing accurate and timely information to the decision-makers of the organization for making informed decisions. The following are the purposes of an accounting system:
Interpret and Record the effects of business transactions
- The accounting system helps in interpreting and recording the financial effects of all business transactions that occur in an organization. This includes all the financial activities such as sales, purchases, salaries, rent, and other expenses.
Classify the effects of transactions to facilitate the preparation of reports
- The accounting system helps in classifying the financial effects of transactions into different categories such as assets, liabilities, equity, revenue, and expenses. This classification helps in preparing financial reports such as income statements, balance sheets, and cash flow statements.
Summarize and communicate information to decision-makers
- The accounting system helps in summarizing the financial information and presenting it in a meaningful manner to the decision-makers of the organization. This information is communicated through financial reports, which help in making informed decisions.
However, the accounting system does not dictate the specific types of business enterprise transactions that the enterprises may engage in. This is a decision that is made by the management of the organization based on various factors such as market demand, competition, and profitability.
Conclusion
In conclusion, an accounting system is an essential tool for any organization as it helps in recording, classifying, summarizing, and communicating financial information to the decision-makers. It is important to understand the purposes of an accounting system to ensure that the financial information is accurate, timely, and useful for decision-making.
The purpose of an accounting system is to record, classify, summarize and communicate financial information of an organization. It helps in providing accurate and timely information to the decision-makers of the organization for making informed decisions. The following are the purposes of an accounting system:
Interpret and Record the effects of business transactions
- The accounting system helps in interpreting and recording the financial effects of all business transactions that occur in an organization. This includes all the financial activities such as sales, purchases, salaries, rent, and other expenses.
Classify the effects of transactions to facilitate the preparation of reports
- The accounting system helps in classifying the financial effects of transactions into different categories such as assets, liabilities, equity, revenue, and expenses. This classification helps in preparing financial reports such as income statements, balance sheets, and cash flow statements.
Summarize and communicate information to decision-makers
- The accounting system helps in summarizing the financial information and presenting it in a meaningful manner to the decision-makers of the organization. This information is communicated through financial reports, which help in making informed decisions.
However, the accounting system does not dictate the specific types of business enterprise transactions that the enterprises may engage in. This is a decision that is made by the management of the organization based on various factors such as market demand, competition, and profitability.
Conclusion
In conclusion, an accounting system is an essential tool for any organization as it helps in recording, classifying, summarizing, and communicating financial information to the decision-makers. It is important to understand the purposes of an accounting system to ensure that the financial information is accurate, timely, and useful for decision-making.
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Community Answer
Purposes of an accounting system include all the following excepta)Int...
D. is the answer .
objectves of accounting system are
. classifying
. summarising
. communicating
. interpreting and recording the transactions.
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Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer?
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Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer?.
Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Purposes of an accounting system include all the following excepta)Interpret and record the effects of business transaction.b)Classify the effects of transaction to facilitate the preparation of reports.c)Summarize and communicate information to decision makers.d)Dictate the specific types of business enterprise transactions that the enterprises may engage in.Correct answer is option 'D'. Can you explain this answer?.
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