Mention any three limitations of accounting (2072,2069,2060,2065,) Bs NEB

 

1. Subjectivity and estimation: Accounting relies on estimates, judgments, and assumptions, which can be subjective and lead to inaccuracies in financial reporting.

2. Historical information: Accounting records provide information about past events and transactions and may not be relevant for current or future decision-making.

3. Cost-benefit tradeoff: The cost of maintaining accounting systems and procedures can be high, and the benefits of the information provided may not always justify the cost, particularly for small businesses.