'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?
Answer & explanation
Correct answer: option 1
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.