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Negatives Of Accounting Fails to provide the whole image - Economic accounting specials With all the quantitative factors rather then the qualitative aspects. It offers only Along with the pursuits of financial values, the non-financial pursuits like the quality of products and labor relations get overlooked. Fails to indicate realisable value - Accounting helps to keep up the stability sheet, but it does not present the amount of funds that the company realises within the sale of assets.
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Legislation and money tax – Accounting helps a company to pay back the right tax it owes to the government While using the help in the recorded ebook of accounts. It also functions being an proof inside the court of regulation.