Explain any five advantages of Accounting.
AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer
- Maintains Systematic Record – It helps in maintaining systematic records of business transactions.
- Assists Management – It helps management in decision making, planning and controlling.
- Facilitates Comparison – Accounting facilitates comparison of financial data of different years.
- Legal Evidence – Account books are treated as legal evidence in a court of law.
- Facilitates Taxation – Accounting records help in correct assessment of income tax and other taxes.
- Facilitates Sale of Business – Proper record of all the assets and liabilities of the business helps in estimating the value of the business.
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