Question

Objective and limitations of accounting

Answer 1

hello Frnd 

Here is your answer ..... 

✴What is accounting ? 

Accounting is an Art, of Recording transactions, classifying them into appropriate ledger,Summarizing them into Trial Balance and Analysing them to conclude the financial position of the enterprises.


●Objectives of Accounting ... 

◆Systematic records of Financial transactions 

◆Valuation of Financial position of the enterprise 

◆Provide information to the user like Govt, Investors and Management etc. 


➡ Limitations of Accounting 

◆There is a possibility of manipulation of data's 

◆Accounting works on Historical cost concept 
That means, assets are recorded on its purchase price ignoring it's market value. 

◆There are certain Accounting policies which needs to followed 

etc.



hope it helps 
jerri