Question

Sate any four limitations of accounting

Answer 1

Answer:

Limitations of accounting are as follows: ... Accounting information ignores the qualitative elements: As accounting statements are confined to monetary values only, qualitative elements are ignored. Accounting information ignores the effect of price level changes: Accounting statements are prepared at historical cost.

Answer 2

Answer:

Limitations of accounting are as follows: ... Accounting information ignores the qualitative elements: As accounting statements are confined to monetary values only, qualitative elements are ignored. Accounting information ignores the effect of price level changes: Accounting statements are prepared at historical cost.