The following are the limitation of accounting:
- Accounting is related to monetary information of an organization. It does not include non-monetary activities like reputations, social liabilities, labour strike etc.
- It considers only cost basis or book value for the valuation of goods or assets. It does not consider about the changes in price level.
- Sometimes the results from different accounting may be different due to different alternatives used in accounting treatment. For example the amount of depreciations may be different due to different methods of deducting depreciation on assets.