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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.
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