An entity may exist to achieve economic, social, or cultural objectives, and these entities use appropriate and varied means and tools to achieve these goals.

In light of the objectives, the means of achieving them are determined. If the purpose of the entity's existence is to achieve economic goals, its means are confined to economic activities related to production, consumption, and exchange. The essence of the entity here is the economic interest zone, characterized by its specific benefits. However, if the purpose is to achieve social goals, its field of activity is limited to operations related to things that achieve public benefits. The essence of the entity here is the social interest zone, characterized as an area of common interests from which people benefit as a group without dividing it.

The importance of this distinction is evident in that the functional objectives of any accounting system are determined by the desired goals of the activity. The objectives of this system differ according to the functional scope of the entity for which it works, resulting in different principles, foundations, rules, and methods. The accounting system applied in profit-oriented units is governed by foundations and principles that differ from those used in the accounting system applied in non-profit-oriented units aiming to achieve social interests.

• ISBN: 9789957167400
• Weight: 0.750 kg
• Size: 17×24 cm
• Paper: White
• Pages: 320
• Year of Publication: 2017
• Binding: Hardcover