Accountancy, asked by kavitak8391, 9 months ago

merits or dismerits of accounting for its user​

Answers

Answered by kirtaniaskk
0

Some of the advantages of accounting are Maintenance of business records, Preparation of financial statements, Comparison of results, Decision making, Evidence in legal matters, Provides information to related parties. Let us discuss the advantages and disadvantages of accounting in greater detail.

Advantages and Disadvantages of Accounting

Stakeholders of an entity want to know whether the entity is earning a profit or incurring losses. They also wish to know whether the capital investment in the business is increasing or decreasing during the accounting period.

Accounting is a mixture of art and science. Accounting is an art of recording, classifying and summarizing financial transactions in a significant manner and in terms of money.

Advantages and disadvantages of accounting

Advantages of Accounting

Maintenance of business records

Preparation of financial statements

Comparison of results

Decision making

Evidence in legal matters

Provides information to related parties

Helps in taxation matters

Valuation of business

Replacement of memory

Browse more Topics under Theoretical Framework Of Accounting

Introduction to Accounting

Functions of Accounting

Bookkeeping

Systems of Accounting

Accounting as an Information System

Role of Accountant

Accounting Concepts and Principles and Conventions

Accounting Standards

Accounting Policies

Classification of Accounting

Double Entry System

Rules of Debit and Credit

Accounting Equation

Maintenance of business records

It records all the financial transaction pertaining to the respective year systematically in the books of accounts. It is not possible for management to remember each and every transaction for a long time due to their size and complexities.

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