Question

Which of the following is not an objective of accounting?

Options

• To maintain records of business.

• Calculation of Profit or Loss.

• Depiction of Financial Position.

• Business firm are not interested to know whether it has earned a profit or suffered a loss during a period of time.

Answer 1

Business firm are not interested to know whether it has earned a profit or suffered a loss during a period of time.

Explanation:

Knowing profit or loss is a primary objective of accounting. Hence, saying that firms are not interested in this is incorrect and not an objective of accounting.