August 25, 2015 by Ed Becker. D. All of the above. Which of the following statements about the Financial Accounting Standards Board is correct? Various decisions depend upon a diverse range of issues being considered. Accounting may lead to window dressing - The term window dressing means manipulation of accounts so as to conceal important facts and present the financial statements in such a way as to show better position than what it actually is. Following these standards will allow for inter-firm and intra-firm comparisons. Benefits of Accounting Standards. Following of these standards ensure that all financial information of company is presented in a fair and true manner. There are many stakeholders who are user of financial statements and take it the base for taking various crucial decisions. Which of the following is a limitation of accounting (a) assistance to management (b) replaces memory (c) unrealistic information (d) evidence in Court 2 See answers gurj57364953 gurj57364953 Answer: One of the biggest limitations of accounting is that it cannot measure things/events that do not have a monetary value. Accounting is only one source of information and primarily provides information based on financial terms: Although this information is vital, decisions cannot be based solely on a monetary basis. Accounting can be manipulated. accountancy. Accounting information is extremely vital in/and for all enterprises though it does have certain limitations. This allows us to check the progress of the firm and its position in the market. It also looks to provide one set of accounting policies that include the necessary disclosure requirements and the valuation methods of various financial transactions. Which of the following is/are the limitations of accounting? I. From the following transaction,prepare 'Accounting Equation ' a) sachin started business with cash Rs 500000 b) Purchase goods for cash Rs 25000 c) pu … rchase goods from rahul Rs 60000 d) sold goods for cash Rs 80000(costing Rs 70000) e) received commission Rs 6000 f) salary paid in advance Rs 15000 C) The FASB follows a due process procedure that permits input from interested parties before an Accounting Standards Update is issued. Which of the following is a limitation of accounting? C. Accounting information is based on estimates. Answer. Assistence to management Replaces memory Evidence in cou… Get the answers you need, now! A) The FASB is an agency of the Federal government. B) The FASB has the authority to fine a non-compliant firm. The last several weeks we have discussed in detail the financial statements, what they do individually and how they are dependent on each other for a larger picture as … Accounting standards impart reliability to financial statements prepared by an organization. Limitations of Accounting & Financial Statements. Click hereto get an answer to your question ️ Which of the following is/are the limitations of accounting? A. Asked on May 01, 2020 by Shriya Katthal. B. Money as a measurement unit changes in value.
which of the following is a limitation of accounting