Purpose of accounting
Purpose of accounting
1. To record various trade transactions that occur by sorting and categorizing trade transactions.
2. For the accuracy of recording trade transactions that is in accordance with accounting principles and accounting laws
3. To show the performance and financial status of the business in a certain period.
4. To collect statistics that will be used to assist in management and planning of operations to achieve success in accordance with the objectives.
Benefits of Accounting Information
1. Help with control Take care of the assets of the company.
2. Help to know the results of operations. whether there is profit or loss
3. Help to know accounting information that is beneficial to executives. It can help in setting policies and planning various operations effectively.
4. Help to know the status of the business. whether there are liabilities or assets in equity
5. Helps to detect operational errors.
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