NCERT · Class 11 · Accountancy · Introduction to AccountingWhich of the following is considered the primary function of accounting?
Step-by-Step Solution
The primary function of accounting is to keep a systematic record of financial transactions. This involves identifying business transactions, measuring them in monetary terms, and recording them in the books of accounts so that financial data can be processed for further analysis.
Detailed Options Breakdown
Option : To maintain systematic record of financial transactions (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 1: To provide financial assistance to employees
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Introduction to Accounting.
Option 2: To fix prices of products
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Introduction to Accounting.
Option 3: To manage company human resources
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Introduction to Accounting.
💡 Study Guide: This question tests core syllabus concepts from Introduction to Accounting. For formulas, key summaries, and mock exam reference guides, read the full Introduction to Accounting Revision Notes.