Explain advantages and disadvantages of accounting
Answers
Answer:
Advantages of Accounting:
Accounting helps to maintain the business records in a systematic manner.
It helps in the preparation of financial statements.
Accounting information is also used to compare the result of current year with the previous year to analyze the changes.
It helps the managers in the decision making process.
It provides information to other interested parties such as shareholders, creditors, investors, customers, government, employees, regulatory bodies etc.
It helps in taxation matter
Accounting information can be produced as evidence in the legal matter.
It helps in valuation of business.
Limitations of Accounting
The items expressed in monetary terms are recorded in the accountings where as the items which are nonmonetary nature not recorded.
Sometimes accounting data are recorded on the basis of estimates and which could be inaccurate.
Fixed assets are recorded as the original cost.
Value of money does not remain stable so accounting value does not show true financial results.
Accounting can be manipulated and biased.
Hope this helps u : )
Answer:
advantages and dis advantages of accounting