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The objective of Financial Accounting can be classified in to two. They are:
1) Internal Objective : To ascertain on any given period, the financial status of organisation / any segment , as a decision tool for management and internal customers. (Shareholders and employees of the organisation).
2) External Objectives : To cater the needs of : Statutory bodies such as Company Law Board, Various Tax Authorities, SEBI , Banks and financial institution both at Central and State Govt and also the customers.
The main goal of financial accounting is to provide information which are consistent with the needs of the beneficiaries of the financial statements , and the most important beneficiaries are the owners of capital and current head of prospective investors and lenders and suppliers , customers , employees, and government agencies and regulatory bodies and others .
Providing information. We can get all kinds of financial information from Financial Statements of a Company.
The primary objective of financial accounting is the preparation of financial statements - including the balance sheet, income statement and cash flow statement.
and providing information to parties outside the organization, i.e investors, creditors, regulators and tax authorities. etc.
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