Which of the following is NOT an objective of financial accounting?

• A. To ascertain the financial position of a business
• B. To determine the profitability of a business
• C. To provide information for decision-making to external users
• D. To promote business products and increase sales

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the objectives of financial accounting. Financial accounting is primarily concerned with recording, summarizing, and reporting financial transactions to provide useful information to external users such as investors, creditors, and regulatory agencies.
2. Step 2: Review the listed objectives in the question. The objectives include: (1) To ascertain the financial position of a business, (2) To determine the profitability of a business, and (3) To provide information for decision-making to external users.
3. Step 3: Compare the listed objectives with the purpose of financial accounting. All three listed objectives align with the core functions of financial accounting, which involve providing accurate and relevant financial information.
4. Step 4: Analyze the statement 'To promote business products and increase sales.' This is not an objective of financial accounting. Promoting products and increasing sales are marketing objectives, not accounting objectives.
5. Step 5: Conclude that the correct answer is 'To promote business products and increase sales,' as it does not align with the primary goals of financial accounting.