Question

Limitations of accounting grade 11

Answer 1

Answer:

Explanation:

1. It only considers quantitative elements and ignores all qualitative items such as honesty of the manager, producing eco friendly products in a quality manner ,etc...

2. Accounting leads to window dressing: some companies hide their losses and inefficiency and show fake profits to their existing investors and potential investors. This is called window dressing which has been practiced by many companies.

3. Subject to fraud.