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