Communicating to the interested parties. Systematic accounting records help in settlement of various tax liabilities. Bookkeeping involves identifying, measuring, recording & classifying financial transactions in the ledger accounts. Management accounting refers to that branch of accounting which is concerned with presenting the accounting information in such a way that helps the management in planning and controlling the operations of a business and in decision making. For this, all the transactions are recorded in chronological order in Journal and then posted to principle book i.e. Objectives of Accounting. Providing information to the various interested parties or stakeholders is one of the most important objectives of accounting. Systematic recording helps in the easy detection and rectification of frauds, errors and inefficiencies, if any. As it is the beginning of the subject, the DK Goel Solutions Class 11 explains the meaning and significant objectives of accountancy to the students for facilitating basic knowledge. Qualitative characteristics are the attributes of accounting information, which enhance its understandability and usefulness: Following are the main advantages of the double-entry system of accounting: Determination of profit/loss and depiction of financial position, d. Identification & recording of Financial transactions and events. Ledger. Skipping the record of any one of the transactions may lead to erroneous and faulty results. Determining profit earned or loss incurred− In order to determine the net result at the end of an accounting period, we need to calculate profit or loss. The following attributes or characteristics can be drawn from the definition of Accounting: (1) Identifying financial transactions and events, (6) Analysing and interpreting financial data, (7) Communicating the financial data or reports to the users. Ledger. Accounting provides factual information about financial performance during a given period of time. Since both the aspects of transactions are considered there is a complete recording of each and every transaction. Following are the limitations of accounting: Users may be categorised into internal users and external users. For this, all the transactions are recorded in chronological order in Journal and then posted to principle book i.e. By keeping systematic records and preparation of reports at regular intervals, accounting helps in making a comparison. This assists the users to understand and interpret the accounting data in a meaningful and appropriate manner without any ambiguity. 7. Assisting management− Systematic accounting helps the management in effective decision making, efficient control on cash management policies, preparing budget and forecasting, etc. For this purpose trading and profit and loss account are prepared. Accountancy refers to systematic knowledge of the principles and the techniques which are applied in Accounting. Harsha started business with cash ₹ 2,00,000, 2. Assessing the progress of the business− Accounting helps in assessing the progress of business from year to year, as accounting facilitates the comparison both inter-firm as well as intra-firm. The above mentioned concept ‘Introduction to Accounting’ is elucidated in detail for Commerce students. Do you agree with this statement? This system of accounting recognises and records both the aspects of the transaction. It helps them in making good financial decisions. Describe the role of accounting in the modern world. Recording business transactions systematically− It is necessary to maintain systematic records of every business transaction, as it is beyond human capacities to remember such large number of transactions. It involves presenting the classified data in a manner and in the form of statements, which are understandable by the users.