Question

What is accounting? What are its objectives and limitations?

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

Answer 2

Answer :-

Accounting is the process of identifying ,measuring, recording and communicating the required information relating to the economic events of an organization to the interested users of such information.

Objectives of accounting are as follows :-

(1) Maintaining Systematic records of financial transactions and events.

(2) Ascertaining profit or loss.

(3) Determining financial position.

(4) Facilitating Management.

(5) Communicating Accounting Information to Users.