What is accounts mention its 3 objectives advantages and limitations?
Answers
Accounting is the science of recording and classifying business transactions and events, primarily of a financial character and the art of making significant summaries, analysis and interpretations of these transactions and events and communicating results to persons who must take decisions or form judgement.
Objectives of accounting:
1. Maintaining proper records of business transactions.
2. Ascertaining the profit or losses of the business.
3. Knowing the sources of revenue and the items of expenses.
Advantages of accounting:
1. Ascertainment of profit and losses.
2.Ascertainment of financial position.
3. Ascertainment of amounts due to business.
Limitations of accounting:
1. Does not provide complete information.
2. Do not give exact information.
3. Accounting figures may be manipulated.