Commercial Applications

Which of these is not a purpose of financial recordings?

  1. Ascertaining financial position
  2. Making accounting information available to stakeholders
  3. Journal
  4. None of these

GAAP

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Answer

Journal

Reason — Ascertaining financial position and making accounting information available to stakeholders/users are recognised purposes of financial recording. Journal is not a purpose — it is a book of original entry used in the accounting process.

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