Limitations of Accounting
Accounting is an important tool for recording, summarizing, and communicating financial information. However, there are certain limitations to it. In this response, we will discuss the limitations of accounting and identify the one that is not the limitation of accounting.

Incomplete Information
One of the main limitations of accounting is that it provides incomplete information. Accounting only focuses on financial transactions that can be measured in terms of money. It does not take into account non-monetary aspects such as employee satisfaction, customer loyalty, or brand value. Therefore, accounting may not provide a complete picture of the company's financial health.

Lack of Qualitative Information
Another limitation of accounting is that it lacks qualitative information. Accounting information is mostly quantitative and does not provide insights into the company's operations, strategies, or market conditions. Qualitative information is important for decision-making, but accounting does not capture it.

Based on Accounting Conventions
Accounting is based on certain conventions such as the historical cost principle, going concern assumption, and matching principle. These conventions can limit the usefulness of accounting information. For example, the historical cost principle may not reflect the true value of assets, and the matching principle may not accurately reflect the timing of expenses.

Evidence in Legal Matters
One of the benefits of accounting is that it can provide evidence in legal matters. Accounting records can be used to prove financial transactions and to detect fraud. Therefore, this is not a limitation of accounting.

Conclusion
In conclusion, the limitations of accounting include incomplete information, lack of qualitative information, and reliance on accounting conventions. However, accounting can provide evidence in legal matters. Therefore, the answer to the question is option 1, evidence in legal matters, is not a limitation of accounting.

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