- February 24, 2019 at 12:48 pm
Joseph has started his first job in accountancy department. A qualified senior member of staff explains to him what the main aim of Accounting is. Which of the following options is the correct aim of Accounting?
A. To maintain ledger accounts for every asset and liability
B. To provide financial information to users of such information
C. To produce a trail balance
D. To record every financial transaction individually
I choose D but B is also correct.
Knowing B was correct I didn’t choose it since it’s the job of Financial Accounting ….the question doesn’t clearly prominates on what sort of Accounting department is he hired by … management or financial.
Kindly help me out with this one.February 24, 2019 at 5:02 pm
My take is:
C is obviously wrong. TBs are a check, but not the aim of accounting.
A is arguably wrong. Ledger accounts are not maintained for every asset and liability. For example, non-curremt assets are recorded in detail in the NCA register (not part of the lwdger system) but only totals are recorded in the ledger system.
D depends on the word ‘individually’. Sometimes totals of several transactions are recorded such as posting the total of the sales day book to sales and receivables. However, individual sales are listed in the SDB, so this option is potentially OK, though whether it is an aim or a method is also arguable.
B Ido think this is the high level aim. FA for shareholders, MA for management
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