Traditional Culture Encyclopedia - Traditional festivals - What is the basic objective of accounting?
What is the basic objective of accounting?
(1) To provide reliable information about the financial condition of an enterprise and its business activities during a certain period of time. Using this information, the managers of the enterprise can visualize the operating condition of the enterprise, look for deficiencies, separate responsibilities, and thus make decisions about the future development of the enterprise.
(2) Provide information that helps information users to predict, compare and evaluate the business performance and problems of the enterprise. It can enable managers to discover the weaknesses in the enterprise's operation in time and correctly assess the enterprise's operating ability, so as to discover the shortcomings as early as possible and turn the situation around.
(3) Provide financial information that helps to direct, regulate and supervise the production and operation activities of the enterprise. Command, regulation and supervision is the control function of accounting, through the control of the enterprise to achieve the desired goals, to obtain more profits for the enterprise, which is an important reason why accounting is indispensable in the enterprise.
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