Question

Accounting provides information about the profitability and financial soundness of a concern. In addition, it provides various other valuable information also. However , accounting has certain limitations. Explain any three of such limitations.

Answer 1

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Answer 2

Answer:

Explanation:Limitations of accounting:

Considers historical values instead of Current values,

Accounting estimates may create huge differences between similar companies,( requires too much assumptions)

Various ways to represent same transaction so comparison with others readily can't be done.