Accounting is widely applicable in the business sector. Today, in the modern world, most of the people are engaged in business sector and all businessmen follow Generally Accepted Accounting Principle (GAAP) to find out profit, loss and financial position of business firm.
2. Government organizations
Though, Government organizations do not follow Generally Accepted Accounting Principle (GAAP), its keep systematic records of all transactions in order to find the position of public fund.
3. Non-Government organizations
Non-government and service organizations such as NGOS, INGOs, Red Cross Society, SOS etc which plays a vital role in the development of nation also uses accounting. The accounting system used in these organizations are called fund accounting.
Individuals also perform economic activities to earn their livelihood. They also perform some form of accounting tos draw financial information for making personal economic decision.
Portable Questions for HSEB
1. Define Book keeping and briefly explain its objectives.
2. Define accounting. Explain its objectives.
3. Explain briefly the scopes of accounting.
4. Mention any two accounting concepts and briefly explain it.