NCERT · Class 11 · Accountancy · Introduction to AccountingWhat is the primary objective of accounting?
Step-by-Step Solution
The primary objective of accounting is to ascertain the net result (profit or loss) of business operations and to show the financial position of the business on a particular date.
Detailed Options Breakdown
Option : To keep records and ascertain profit/loss and financial position (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 1: To increase the number of employees
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Introduction to Accounting.
Option 2: To prepare advertising campaigns
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Introduction to Accounting.
Option 3: To pay higher dividends compulsorily
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.