Limitations of Accounting


Historical information:Accounting reports are based on the past historical information

Financial information: Accounting does not reveal non monetary information like customer satisfaction, market competition, market share, etc.

Inadequate Cost information:Accounting does not provide cost information to gauge the product or department-wise profitability

Personal judgment: Financial information is clouded by personal judgment of the preparers like provisions, valuations, etc.

Post a Comment

0 Comments