Explanation:

Accounting is an art of recording, classifying, summarizing and interpreting the data in a significant manner of money's worth business transactions. All these functions start with recording of data. Without recording of transactions, all other functions can not be performed. So, the basic function of financial accounting is to record all business transactions.

The prime function of accounting is to interpret all such business transaction. It plays an important role in providing appropriate information to the business for decision making.