Accounting advantages and limitations

Accounting advantages and limitations

Advantages of Accounting:

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:

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.