Accounting advantages and limitations
Advantages of Accounting:
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| Accounting Advantages |
1- Ascertainment of profit and losses.
2- Ascertainment of financial position.
3- Maintenance permanent records of business.
4- Ascertainment of progress of the business.
5- Ascertainment of amounts due to business.
6- Helpful to the management.
Limitation of Accounting:
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| Accounting Limitations |
1- Does not provide complete information.
2- Do not give exact information.
3- Accounting figures may be manipulated.
4- Does not show the real financial position of the business.
5- Accounting fails to supply the financial information.
6- The business as the assets and liabilities are shown in the
balance.
