Explain the various methods used to measure and report the performance of a business in accounting theory. What are the limitations of these methods, and how can businesses overcome them to provide more accurate and reliable information to stakeholders?

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is