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In Financial sales it is also useful in the following respects:-
(1) Increased volume of financial enterprise outcomes in high number of dealings and no entrepreneur can remember everything. Financial Accounting information obviate involve keeping in mind various dealings.
(2) Financial Accounting record, prepared on the basis of consistent methods, will enable a business to compare outcomes of one interval with another interval.
(3) In financial accounting, Taxes specialists (both income tax and sales tax) are likely to believe the facts in the set of sales books if managed according to usually recognized sales ideas.
(4) Cocooning information, supported up by appropriate and authenticated deals are good proof in a court of law.
(5) In financial, If a business is to be sold as a going concern then the of different resources as shown by the balance piece helps in negotiating appropriate cost for the company enterprise.
Limitations of Financial Accounting
Advantages of sales mentioned in this area do not suggest that sales are free from restrictions.
Following are the limitations of financial accounting:
Financial sales allow substitute therapies Accounting is based on ideas and it follows "generally recognized principles" but there exist more than one concept for the treatment of any one item. This allows substitute therapies within the structure of usually recognized ideas.
The ending stock of a business with financial accounting assignment help
For example, the ending stock of a business may be sought after by anyone of the following methods: FIFO called the (First-in- First-out), LIFO called the (Last-in-First-out), Average Price, Standard Price etc., but the outcomes are not identical.