Explain any 3 advantages of Accounting.
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Advantages of accounting
1)permanent and reliable record : Accounting provides permanent record for all business transaction and provides reliable information to different interested parties
2)ascertainment of financial position : It is not enough to know only the profit or loss but the proprietor require full picture of financial position to plan for next year business
3)net result of business organisation: Accounting provides the final result of business for a given period of time it may be profit or loss
1)permanent and reliable record : Accounting provides permanent record for all business transaction and provides reliable information to different interested parties
2)ascertainment of financial position : It is not enough to know only the profit or loss but the proprietor require full picture of financial position to plan for next year business
3)net result of business organisation: Accounting provides the final result of business for a given period of time it may be profit or loss
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Advantages of accounting :-
♥ The financial position and performance during and at the end of the accounting period is known .
♥ Helps the management to make business plans , takes decision and exercise control over the affairs .
♥ A systematic and timely recording of transactions obviates the necessity to remember transactions .
♥ Loan is granted by banks and financial institutions on the basis of growth of the business .
♥ It is often accepted as good evidence
in the court .
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