Question

Which of the following is/are the advantages of accounting?

• A. Decision making relating to financial aspect
• B. Evidence in legal matters relating to accounting
• C. Provides information to interested parties
• D. All of the above

Answer 1

Answer: (D)

All of the above

Accounting plays an important and useful role for the businessman. Following are the points which shows the advantages of accounting:

1) It helps in decision making relating to financial aspect

2) It is helpful in comparison

3) It provides information regarding costs

4) It provides information to interested parties

5) It provides the evidence in the court of law

6) It provides the value of the business.