Question

What is the meaning of Accounting? Explain any three limitations of accounting.​

Answer 1

Explanation:

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.

Limitations of accounting are as follows: ... 

Accounting information ignores the qualitative elements: As accounting statements are confined to monetary values only, qualitative elements are ignored. Accounting information ignores the effect of price level changes: Accounting statements are prepared at historical cost.Ju