Question

Give some advantages of accounting..??

Answer 1

Answer:

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Advantages of accounting are :-

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1.Replacement of Memory :-

Human memory is limited and no businessman can remember all his transactions.In accounting business transactions are recorded properly.

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2.Legal Evidence :-

Records and accounts are accepted as documentry evidence in the court of law.

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3.Sale of Business :-

If a businessman wants to sell his running business ,the accounts maintained by him will help in deciding the reasonable value.

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4.Rising Loans :-

In order to borrow funds from banks and financial institutions, a business firm has to submit its financial accounts.

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5.Comparative Study :-

A systematic record of transactions enables a businessman to compare the current year's result with those of previous years and identify the key factors causing the change.

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