Question

Limitation of accounting and advantages.I will mark u brainliest

Answer 1

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 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.

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 it helps you...✌️