Which of the following is/are the advantage of accounting?
(i) Maintenance of legal records
(ii) Preparation of financial statements
(iii) Comparison of result

(i) only

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(i) & (ii)

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(ii) only

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(ii) & (iii)

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Solution

The correct option is D (ii) & (iii)
Accounting plays an important and useful role for the businessman. It has various advantages:

Preparation of Financial Statements: Accounting provides various information through which financial statements are prepared. Preparation of financial statements are prepared on the basis of correct accounting.

Comparison of results: Accounting is based on certain rules and principles. Each and every business maintains the proper records on the basis of uniform practice. This uniformity will enable them to compare the results of one business to another business or one period to another period.

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(ii) Calls in Advance

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Which of the following is/are the advantage of accounting?(i) Maintenance of legal records(ii) Preparation of financial statements(iii) Comparison of result

Which of the following is/are the advantage of accounting?
(i) Maintenance of legal records
(ii) Preparation of financial statements
(iii) Comparison of result