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Limitation of the Financial Accounting.
There much limitation can be considered in case of the Financial Accounting but here we are discussing the main two limitations
It records only financial transaction, it is limited to the financial transaction only, and for example other things which are not having any money value are not recorded in the books of accounts.
Estimation Limitation: Accounting doesn’t produce the exact result due to sometime few transaction contains the estimation for example Depreciation on estimated life of the assets and bad debts provisions etc.
Unique solution in accounting
X purchased a machinery on instalment system for rs.27300 to be paid as follows. on delivery rs.8000, at the end of first year rs.7600, at the end of second years.6000, at the end
what is historigram.
how to define assets?
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