3. Objectives of Accounting

Objectives of Accounting

The job of an accountant is to be able to maintain a systematic record of financial information namely journal ledger profitability and financial position

We have been introduced to the journal and ledger above in the definition of accounting

1. The major objective of books of accounts accountancy is to calculate the profit earned or loss suffered in a given year. This is calculated by preparing a profit and loss account which you will learn in the course of this year
2. Another important aspect of the objectives of accounting is to determine the financial position at the end of every year that is assets liabilities and capital at the end of the year.

Proper maintenance of books of accounts assists the management in planning and decision-making throughout the lifetime of the business

Note for students.
(As accounts students it is very important for us to understand the meaning of certain words.)
Quantitative
Quantitative data is something that is a number based which can be measured which can be counted. 

For example how much salary does a CA make in a year?

Qualitative
Qualitative data relates to other than numbers characteristics.

For example, is the CA a girl or a boy
Is the CA hard working employee or a lazy one