Multiple choice

Which of the following statements is not an objective of accounting?

  1. It provides information about the assets, liabilities and capital of business entities.

  2. It maintains the records of a business.

  3. It provides information about the performance of a business entity.

  4. It provides details about the personal assets and liabilities of the owner.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting focuses on the business entity, not the owner's personal finances. The business entity concept requires that business transactions and personal transactions of the owner be kept separate. Therefore, accounting does NOT provide details about the owner's personal assets and liabilities - this is the correct answer.

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