Objectives,Advantages and Limitations of accounting

Objectives of accounting:

1. Maintaining proper records of business transactions.

2. Ascertaining the profit or losses of the business.

3. Knowing the sources of revenue and the items of expenses.

4. Ascertaining of the financial position of the business.

5. Ascertaining the amount due to the business and the amounts due from the business.

6. Ensuring effective control over the performance of the business.

Advantages of accounting:

1. Ascertainment of profit and losses.

2.Ascertainment of financial position.

3. Ascertainment of amounts due to business.

4. Ascertainment of  progress of the business.

5. Maintenance permanent records of business.

6. Helpful to the management.

Limitations of accounting:

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.