Accounting Objectives



Accounting objectives

The primary objectives of accounting

In all epochs of human history, accounting was used in different ways, but always with the same overall goal and although times have changed to the fundamental purpose hurried steps, accounting remains the same. Various scholars define accounting as a system of observation, measurement and classification of economic events and their reflections and coherent approach to the structure of related accounts, which generalizes the information needed to manage and control business (Spiceland, 2009, p.57). General purpose of Accounting is to provide information on economic events, financial and social issues in a business or organization on a continuous, orderly and systematic progress and / or development of it, in relation to its goals and objectives outlined in order to bring account and reason the movement of public and private wealth in order to know their results, for a correct decision-making.

The primary objective of accounting is to create and deliver quantifiable, financial and economic information about individuals and their businesses. This information should use the steering wheel and the company's authority (board of directors, management, etc.) to obtain the basis of output current and to make critical business decisions and compliance testing of the actual economic of assumptions. Analysis of the company's financial situation, based on the accounts is also important that granted annually by the management's discharge in commercial companies (Spiceland, 2009, p.61). Other than that the fundamental objective of accounting is to provide information relating to an economic entity accounting and the measurement refers to the registration and submission of such information to various types of users.

The basic terminology of Financial Reporting

Financial reporting is a set of indicators of accounting, as reflected in the specific form of tables and characterizes the movement of assets, liabilities and financial position for the period. Financial reporting ...