Limitation of the financial accounting, accounting, Basic Statistics

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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. 

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