GROUP ASSINGNMENT 2 - GROUP M MEMBERS ANTOHNY M MUSYOA BCO\/0021 14 TECLA T KORIR BC0\/0098\/14 SEBENCIA N ORONDA BCO\/0167\/14 DAVID MWANGI BCO\/0072\/14 JUMA

GROUP ASSINGNMENT 2 - GROUP M MEMBERS ANTOHNY M MUSYOA...

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GROUP M MEMBERS ANTOHNY M. MUSYOA BCO/0021/ 14 TECLA T KORIR BC0/0098/14 SEBENCIA N ORONDA BCO/0167/14 DAVID MWANGI BCO/0072/14 JUMA MWANGADU BCO/0004/14 SARA WACU MWANGI BCO/0073/14 RAPHAEL MBITHI BCO/0037/14 VALENTINE SIFUNA BCO/0110/14 STEVE OCHIENG BCO/0136/14 TASK ASSIGNMENT ONE UNIT ACCOUNTINGS FOR ASSETS AND LIABILITIES UNIT CODE BCA 201 LECTURER CAP RASHID SIMIYU
QUESTION. FINANCIAL REPORTS ARE NOT SUFFICIENT TO BE TRUTHFUL NEITHER ARE THEY SUFFICIENT TO BE ACCURATE HENCE THEY ARE SUFFICIENTLY INNACCURATE AND UNTRUTHFUL. CRITICIZE THIS STATEMENT. LIMITATIONS OF FINANCIAL REPORTS 1. MONEY MEASUREMENT. Accounting records only those transactions which can be measured in terms of monetary value and terms. Some issues may be very important for a concern but not money value can be imputed to this importance for instance efficient management or conflicts between managers may significantly affect the performance of the firm but not be put in the balance sheet. This limitation has made it difficult to record such statements and elements as human resource asset, environment and social responsibility. 2. HISTORICAL INFORMATION Financial reports report what has happened in the past. By the time data is collected and recorded in the books of accounts, the event would have occurred and thus they would be history. They do not report what is

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