Question

Which of these is not a purpose of financial recordings?

Options

• Ascertaining financial position

• Making accounting information available to stakeholders

• Journal

• None of these

Answer 1

Journal

Explanation:

A journal is a tool used in the financial recording process, but it is not the purpose of the financial recording itself. Financial transactions are initially recorded in chronological order in the journal. The purposes of financial recordings include ascertaining financial position and making accounting information available to stakeholders.