WHAT ARE LIMITATIONS OF ACCOUNTS ?
- 4 Answers
- 8612 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / maddi vinod
Accounting is based on historical cost / values.
The real values such as Brands (Self-developed), human
assets, Reputation, hold on the market , credit of
Organisations etc can not be accounted.
Financials only shows the cost at which assets are bought/
constructed/ acquired net off depreciation even thought
there are possibilities of appreciation of assets due to
inflationery effects.
Theses are the few limitations.
| Is This Answer Correct ? | 14 Yes | 3 No |
Answer / aurosnigdha bose
There r certain limitations of accounts-
1.It is based on historical cost.
2.It isn't free from personal bias.
3.it can't say the current financial position of a company.
| Is This Answer Correct ? | 13 Yes | 2 No |
Answer / dharmesh sati
It is baded on historical (like investment, fixed assert)
We can not know current finance position of a company
only economical mean (which can measure via money) tras.
should be recored.
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / binny dhillon
1,records the monetary transactions only
2.only material items are dislosed in financial statemnts
3.fails to give the timely information to the owners and management as the summarised fiancial information is presented only at the end of the year.
4.accounting logs can be manipulated by the owners and management
| Is This Answer Correct ? | 5 Yes | 0 No |
Expand ________BBC
What is meant by the word Liquidation. Give examples
The total sales is more than the production then what is this situation called
I work in a semi govt society. We purchased a flag for celebrating independence day in office premises . Plz tell me under what head / ledger of exp it comes
Who are the Users of Financial Information
What is the difference between Finance and Accouts?
Which asset is depreciated in tangible?
what is npa & what are the different types of NPA?
3 Answers State Bank Of India SBI,
Feature of Master letter of credit of Garments manufacturing company?
you buy a $100 asset. $25 cash, $50 debt, and $25 new equity. Explain how the 3 financial statements (IS, BS, CFS) will change.
What is compensation theorem?
Hi..! Frineds plz give a suggesion.I want to join in m.com (i.s.), What is features of this course.
Audit 
