The primary objectives or importance of financial accounting are as under:
The main objectives of financial accounting are to keep financial transactions in systematics way.
Whenever, accounting data are needed is future, It will help to find out easily.
Other objectives of financial accounting are to find out profit or loss of the organization.
It helps to find out profit or loss of the organization in an accounting year by preparing income statement (profit and loss account).
Financial accounting helps to find out financial position of the organization in an accounting year by preparing balance sheet.
Balance sheet can be prepared for single year as well as comparative years.
Click on link for YouTube videos topic wise :
Basic Journal Entries in Nepali
Basic Journal Entries
Journal Entry and Ledger
Trial Balance and Adjusted Trial Balance
Bank Reconciliation Statement (BRS)
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)
Accounting for Long Lived Assets
Analysis of Financial Statement
Financial accounting provides necessary information and upto date to related users.
Users are internal and external like management, creditors, employees and government etc.
They take decision according to their need by comparing financial statement.
Every state and country charges tax on income.
Income may be either personal or firm.
Accounting helps to fixation of tax to pay the government in an accounting year.
Keep in Mind (KIM)
The importance of financial accounting can be understood by answering following questions:
How much was earned last year?
How much we have earned this year?
Is our business improving?
How much cash do we have?
How much loan we have taken?
How much investment we have done?
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