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| 1. |
Explain the factors which necessiated systematic accounting. |
| Answer» Solution :Main purpose of accounting is to provide information to a variety of users for taking various DECISIONS. Hence the information should have the quality of reliability, understandability and comparability which is possibleonly if the accounting is carried out systematically i.e., based on principles and rules of accounting. Further, the ROLE of accounting has been CHANGING with the changes in economic development and increasing social demands, which requires analyses of accounting data and preparation of reports. Systematic recording is also needed for ASSESSMENT of various taxes such as Goods and Service Tax (GST), Income Tax etc. | |