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Importance of the Concept of Limitation of Final Accounts-

It is a very vital topic about which the accounts and finance students should be aware of. Our team will give you Limitation of Final Accounts Assignment Help in every possible way so that you are able to get comprehensive knowledge in this area.

Let us see the importance this topic holds-

  • Final accounts are very important for any organization as they represent the complete financial picture and they are generally stated as income statement (trading profit and loss account) and position statement (balance sheet).
  • But apart from the many advantages of final accounts there are certain limitations also which every accounting and finance student must know.
  • Qualitative aspects are ignored while preparing final accounts and only quantitative aspects are given attention, so it may not be able to portray a genuine picture of the organization.
  • Final accounts ignore the human factor and the changes that come in the level of prices over time.
  • Final accounts are based on practices and conventions which may not be followed in a same manner by every organization so there are less chances of uniformity in the presentation of final accounts of all organizations.
  • Many times it may be seen that final accounts can be influenced by personal judgment and it may not reveal a true picture of actual position of the firm.
  • Full disclosure of the important facts is generally absent from the final accounts; so many important non-monetary transactions go unnoticed which are of vital importance.
  • Various other limitations are there like- there are no details about costs and cost control methods, it is historical in nature, it does not classify expenses on a comprehensive level, reason behind losses cannot be analyzed by seeing financial statements etc

Thus Limitation of Final Accounts Homework Help will sharpen your knowledge in the field of accounting and you will receive great benefits in the long term also.

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