1. OBJECTIVES OF FINACIAL ACCOUNTING
1. Maintaining Systematic Records
- Maintaining Systematic Records of transactions for an organization in the accounting books
2. Recording transactions
- All transactions are recorded date-wise to be used in the future for further process
3. Ascertaining profit or Loss
- Ascertaining profit or Loss whether the organization have eared profit or suffered a loss
- Income statement on trading a profit or loss is prepared for one financial year
4. Ascertaining Financial Position
- by preparing balance sheets
- balance sheet contains assets and liabilities that give information about the financial position of the organization
5. Assisting The management
- provides financial information to management for decision making
- Information includes the debtors and creditors, profit-loss etc
6. Provide accounting info to interested users
- users analyze the info per their requirement
- users can be -
- internal - management, employees
- external - creditors, tax authorities, investors