CA Foundation Exam > CA Foundation Questions > The direct advantage of accounting do not inc...
Start Learning for Free
The direct advantage of accounting do not include:
- a)Preparation of financial statements
- b)Competitive advantage
- c)Ascertainment of profit or loss
- d)Information to interested groups
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
The direct advantage of accounting do not include:a)Preparation of fin...
Accounting is defined as the art of recording, classifying, summarizing, analyzing, interpretation and communicating the results of transactions and events which are of financial character. Hence, it includes preparation of final accounts, ascertainment of profit or loss and its communication to users, but it does not includes any kind of competitive advantage.
View all questions of this test
Most Upvoted Answer
The direct advantage of accounting do not include:a)Preparation of fin...
Advantages of Accounting
Preparation of financial statements
Accounting provides the preparation of financial statements that include the income statement, balance sheet, and cash flow statement. These statements provide crucial information about a company's financial health, profitability, liquidity, and cash flow.
Ascertainment of profit or loss
Another advantage of accounting is that it helps in determining the profit or loss of a business. By keeping track of all revenue and expenses, accounting helps in calculating the net income of a business. This information is vital for making informed business decisions and planning for the future.
Information to interested groups
Accounting provides financial information to different interested groups, including shareholders, creditors, investors, and government agencies. This information helps these groups to assess the financial health of a business and make informed decisions.
Disadvantage of Accounting
Competitive advantage
Competitive advantage is not a direct advantage of accounting. Although accounting provides essential financial information, it does not necessarily provide a competitive advantage. A company may have strong accounting practices, but it still needs to have a unique value proposition and a strategic advantage to stay competitive in the market. Accounting is just one of the many tools that businesses use to stay competitive.
Preparation of financial statements
Accounting provides the preparation of financial statements that include the income statement, balance sheet, and cash flow statement. These statements provide crucial information about a company's financial health, profitability, liquidity, and cash flow.
Ascertainment of profit or loss
Another advantage of accounting is that it helps in determining the profit or loss of a business. By keeping track of all revenue and expenses, accounting helps in calculating the net income of a business. This information is vital for making informed business decisions and planning for the future.
Information to interested groups
Accounting provides financial information to different interested groups, including shareholders, creditors, investors, and government agencies. This information helps these groups to assess the financial health of a business and make informed decisions.
Disadvantage of Accounting
Competitive advantage
Competitive advantage is not a direct advantage of accounting. Although accounting provides essential financial information, it does not necessarily provide a competitive advantage. A company may have strong accounting practices, but it still needs to have a unique value proposition and a strategic advantage to stay competitive in the market. Accounting is just one of the many tools that businesses use to stay competitive.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer?
Question Description
The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer?.
The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The direct advantage of accounting do not include:a)Preparation of financial statementsb)Competitive advantagec)Ascertainment of profit or lossd)Information to interested groupsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup