Question

" A firm prepares its books of accounts by manipulating certain transactions which help the firm to evade tax liability ”. (a) state and explain which qualitative characteristic of accounting information is this firm ignoring . (b) state the limitation which is highlighted in the above statement.​

Answer 1

Answer:

Explanation:

Accounting can be defined as a process of reporting, recording, interpreting, and summarizing economic data. The introduction of accounting helps the decision-makers of a company to make effective choices by providing information on the financial status of the business. Today, accounting is used by everyone, and a good understanding of it is beneficial to all. Accountancy act as a language of finance.