Accounting in business Coursework Example | Topics and Well Written Essays - 250 words

Accounting in business - Coursework Example The double entry system also aids in the conduction of Analytical Review Procedures. This is because it facilitates the comparison of financial results from period to period. However, the double entry system also has its limitations. To begin with, the system is hard to understand due to its complexity. It is also time consuming, because there needs to be the recording of entries in their respective accounts twice. The system is also expensive to maintain. This could occur, especially to companies that have numerous transactions at any given moment. Such companies need to employ more people to maintain the accounting system. In addition, due to the complexity, the maintenance of the books of accounts could become costly. Finally, the system is could be erroneous. For instance, if the system misses to record a particular account, an error of omission occurs (Kieso & Weygandt, 2012). Such an error is not easily detectable, as it does not affect the financial position of an entity because the trial balance still