Fundamental Purposes of Accounting

FUNDAMENTAL PURPOSES OF ACCOUNTING.

The fundamental purposes of Accounting are the following:

1. Establish a rigorous control over each of the resources and obligations of the business.
2. Record, clearly and precisely, all the operations carried out by the company during the
Fiscal exercise. .
3. Provide, at any time, a clear and true picture of the financial situation that
Save the business.-
4 Anticipate the future of the company well in advance.
5. Serve as proof and source of information, before third parties, of all acts of a legal nature in which the accounting may have probative force in accordance with the established
by the law.
Information Source: Elias Lara Accounting Course