Accountancy, asked by KhiladiNIMiSH, 8 months ago

Limitation of Accounting?

Answers

Answered by HeroicGRANDmaster

Answer:

Accounting often uses historical costs to measure the values. This fails to take into consideration factors such as inflation, price changes, etc. This skews the relevance of such accounting records and information. This is one of the major limitations of accounting.

Explanation:

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Answered by NikitaNitin

Answer:

One of the biggest limitations of accounting is that it cannot measure things/events that do not have a monetary value. If a certain factor, no matter how important, cannot be expressed in money it finds no place in accounting.

Explanation:

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