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in Introduction to Accounting by (15.7k points)

“Accounting gives number of advantages to the business”. What are the important advantages of accounting?

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1 Answer

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by (15.2k points)

The following are the advantages of accounting

1. Provide Quantitative information:

Accounting helps in gathering quantitative information on profits earned by the business or loss sustained by them.

2. Helps in ascertaining financial position of the business that is, total assets owned and total liabilities owed.

3. Helps in making a systematic record of transactions, which can be used for future reference and appropriate retrieval.

4. Acts as an information system:

It provides adequate information to the interested users in a processed form.

5. Beneficial to different interested users of accounting information.

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