Holooly Plus Logo
Holooly Plus Logo

Question 1.TQ.5: Describe two main purposes of accounting.

Describe two main purposes of accounting.

The blue check mark means that this solution has been answered and checked by an expert. This guarantees that the final answer is accurate.
Learn more on how we answer questions.

(1) To collect and store detailed information about an entity’s activities. (2) To abstract and summarize information in the most effective way for the requirements of a specified user or group of users.

Related Answered Questions

Question: 1.A.2

Insert the missing words in each of the following sentences: (a) The word _______ in everyday language means an explanation or a report. (b) Traders in the fifteenth century began to adopt a system of __________ to record information. (c) The owners of a business want to know how much _______ ...

Verified Answer:

a) account; b) double-entry book-keeping; c) profi...
Question: 1.A..3

State whether each of the following statements is true or false: (a) An auditor’ job is to find out whether a fraud has taken place. True/False (b) Management accounts are required by law. True/False (c) Tax avoidance is lawful. True/False (d) A balance sheet is a list of assets and liabilities. ...

Verified Answer:

a) false; b) false; c) true; d) true; e) false.
Question: 1.A.6

Into which category may the following functions/services best be placed? Tick the appropriate column. ...

Verified Answer:

1 Broadcasting: quasi-governmental. 2 Famine relie...
Question: 1.A.5

Insert in the following table one advantage and one disadvantage of operating a business as (a) a sole trader; (b) a partnership; and (c) as a limited liability company. ...

Verified Answer:

Type of entity Advantage Disadvantage (a) Sol...
Question: 1.A.4

Which is the odd one out among the following professional accountancy bodies. State your reasons for the one that you select. (a) AAT (b) CIMA (c) CIPFA (d) ICAEW ...

Verified Answer:

The AAT. It is not a chartered body and it is not ...
Question: 1.TQ.4

Why should a non-accountant study accounting? ...

Verified Answer:

Accountants collect a great deal of information ab...
Question: 1.TQ.6

What statutory obligations require the preparation of management accounts in any kind of entity? ...

Verified Answer:

None. The preparation of management accounts is fo...
Question: 1.TQ.8

What statutory obligations support the publication of financial accounts in respect of limited liability companies? ...

Verified Answer:

Statutory obligations are contained in the Compani...