Question

accounting and it's advantage and this advantage
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Answer 1

Answer

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Accounting means a record of personal use and record of financial transactions.

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•The purpose accounting is to communicate the financial facts about a firm to various interested parties. example- owners, investors, creditors, employes, tax autorities and government.

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•Lenders and investors can judge the earning capacity of the firm and decide wether or not to lend/invest more money. Shareholders can make an estimate of the effieciency of management.

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Answer 2

Answer:

Some of the advantages of accounting are Maintenance of business records, Preparation of financial statements, Comparison of results, Decision making, Evidence in legal matters, Provides information to related parties. Let us discuss the advantages and disadvantages of accounting in greater detail.