Question

State the advantages and limitations of accounting

Answer 1

Answer:

Merits and Demerits of Accounting. 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

Answer 2

ADVANTAGES:-

• 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.

LIMITATIONS:-

• Accounting policies.
• Estimates.
• Professional judgement.
• Verifiability.
• Using historical costing.
• Measurability.
• Predictive value.
• Fraud & Errors.

I hope this will help you friend.