WAEC GCE – ACCOUNT
I) To maintain systematic records
ii) Estimate profit and loss
iii) Facilitating rational decision making.
This implies the expression, GBwith clarity, of accounting information in such a way that it will be understandable to users – who are generally assumed to have a reasonable knowledge of business and economic activities
This implies that, to be useful, accounting information must assist a user to form, confirm or maybe revise a view – usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?)
This implies consistent treatment of similar items and application of accounting policies