Question

Conventional system of accounting cannot give a complete picture of all transactions.

• A. True
• B. False

Answer 1

The correct option is A True

Under conventional system of Accounting :-

• Since only one cash book is kept, personal and business transactions will be recorded together.
• Real and Nominal accounts will be ignored by this system.
• Profit or Loss can be ascertained but we cannot represent the financial position of the organization
• No trial balance is prepared, so arithmetical accuracy of accounts cannot be verified
• So, conventional or single entry system of accounting cannot give a complete picture of all transactions.