What are the objectives of financial accounting?

The purpose of accounting can be summarized in the following manner:

1. Ascertain the results of operations during a period

2. Ascertain the financial position.

3. Maintaining a control over assets

4. Planning in respect of cash

5. Providing information to tax authorities and other government agencies.

6. To properly match income with expenses.

7. To provide a reliable set of data with which to prepare financial reports for analysis purposes (for owners, lenders, investors, etc).

8. To provide a reliable set of data with which to report income for tax purposes.