What is accounting? what are its limitations.

1.	What is accounting? what are its limitations.
Answer» *Limitations of Accounting* Limitations of AccountingThere are some MISCONCEPTIONS about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance SHEET perfectly depicts the financial position of a firm. Limitations of AccountingThere are some misconceptions about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance sheet perfectly depicts the financial position of a firm.Whereas the truth is that accounting is not a PERFECT science or art or language YET. It has been EVOLVING for so many years and continues to evolve. The limitations of accounting must be studied to understand it better

Answer»

Limitations of Accounting

Limitations of AccountingThere are some MISCONCEPTIONS about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance SHEET perfectly depicts the financial position of a firm.

Limitations of AccountingThere are some misconceptions about accounting. Like the fact that a Profit & Loss Statement shows the true profit or loss earned in a year, or that a balance sheet perfectly depicts the financial position of a firm.Whereas the truth is that accounting is not a PERFECT science or art or language YET. It has been EVOLVING for so many years and continues to evolve. The limitations of accounting must be studied to understand it better

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