'Accounting is viewed as chronological record of financial transactions of an organisation at actual amounts involved'.

Which role of accounting is described in above lines?

As a historical record

The correct answer is option 1- As a historical record.

The accounting is viewed as a historical record as accounting is the chronological record of financial transactions of an organisation at actual amounts involved.

Different Roles of Accounting.

• As a language – it is perceived as the language of business which is used to communicate information on enterprises.
• As a historical record- it is viewed as chronological record of financial transactions of an organisation at actual amounts involved.
• As current economic reality- it is viewed as the means of determining the true income of an entity namely the change of wealth over time.
• As an information system – it is viewed as a process that links an information source (the accountant) to a set of receivers (external users) by means of a channel of communication.
• As a commodity- specialised information is viewed as a service which is in demand in society, with accountants being willing to and capable of providing it.