Search answer for your unanswered questions.

Class : 11
Unit : Account

State any five importance/advantages of accounting.

Ans : Three importance of accounting are as follows:- a. Complete record:-Accounting facilities to replace human memory by maintaining complete record of financial transactions. b. Knowledge of profitability:-Accounting facilitates to ascertain net results (profit or loss) of business operation by preparing profit and loss account or income statement. c. Knowledge of financial position:-Accounting facilitates to ascertain financial position of the organization by preparing balance sheet. d. Reduction in errors:-Accounting facilitates to record all business transaction scientifically and systematically, Since, it helps to reduction in errors. e. Helpful in decision-making:-Accounting communicates the financial informations to various users. With the help of financial information to making the various decisions by users.
    Did you find this answer useful?
   Then Register Now to view other answers easily.