Discuss the objectives of Accounting.

Objectives or functions of accounting are as follows:

• Maintenance of Business Records – Business involves numerous transactions, which cannot be remembered orally. This objective of accounting is to keep a systematic record of business transactions, which are financial in nature.
• Calculations of Profit or Loss – Another objective of accounting is to ascertain the profit earned or loss incurred by a business during an accounting period. It is done by preparing Trading and Profit & Loss A/c.
• Depiction of Financial Position – For this purpose a statement called 'Balance Sheet' is prepared at the end of every accounting period. It shows a proper record of assets and liabilities of business on a particular date and helps in judging the financial position.
• Providing Accounting Information to its Users – Accounting also has the objective of providing relevant information to its users in time. This helps the users in taking right decisions.