Question

merits and demerits of accounting​

Answer 1

Answer:

Accounting is the art of classifying, summarising and recording in a significant manner and in terms of money, events and transactions which are, in part at least of financial character, and evaluating the results thereof.

Accounting is involved with the documentation of financial transactions, then classifying and reviewing those transactions and report the financial information to users.

Accounting can be important for stakeholders of an entity who want to comprehend whether that entity is gaining a profit or incurring losses. Individuals also wish to know whether the capital investment in the business is decreasing or increasing during the period of accounting.