Question

what is accounting? what are its objesctives and limitations

Answer 1

aloha!

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what is accounting ?

◆ it is related to management of financial information about business, corporation etc.

◆ now, it involves 4 things:

ミ recording=> making records of all the transactions the firm enters into.
for this,
•accountants maintain a set of books.
•computers are also used these days which automatically make records.

ミsummarizing=> accountants classify data into categories. these are present in the chart of accounts.
many of the times the data is updated.

ミ reporting=> accountants have got to send periodic reports to investors about company's affairs.
reporting is done in the form of financial statements which are regulated by government bodies.

ミ analyzing=>after everything is done including making records, update and reporting, etc these are compared to different ones such that we can get information about the performance.

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limitations:

◆ may involve fraud and errors.
◆ use of predictive values instead of actual ones.
◆ professional judgements can make the financial statements more subjective or much noticeable which not good for particular accountant working for a corp. or business.

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hope it helps ☺️☺️

Answer 2

Accounting is the process of managing

the income and expenses of a business.

please mark this answer as a brainliest.