Advantage and Disadvantage of Financial Accounting

Advantage and Disadvantage of Financial Accounting

ADVANTAGE:


1)    Provides financial information about the business.

2)    Provides assistance to management.

3)    Helps in comparison of financial results.

4)    Comparison of its own result of different years.

5)    Helps in decision making.

6)    Helps in valuation of the business.

7)    Can be used as an evidence in legal matter.



DISADVANTAGE:


1)    No details information about cost.

2)    No cost control method.

3)    No information on efficiency.

4)    No classification of expenses.

5)    Not helpful in price fixation.

6)    No analysis of losses.

7)    Fails to provide day to day information to pretermine cost.