Question

why accouting is historical in nature

Answer 1

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The historical functioning of accounting involves keeping accurate records of all the past transactions made in the business.This type of accounting gives the net result other than just keeping the records. The preparation of the balance sheet takes place to determine the financial position of the business.

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Answer 2

Answer:

Financial accounting considers only those transactions which are of historical nature i.e the transaction which have already taken place. No futuristic transactions find any place in financial accounting, howsoever important they may be from business point of view.

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