Concept:Accounting limitations are weaknesses that reduce the usefulness of financial statements to users.
Explanation:One major limitation is that accounting records only transactions that can be expressed in money.
Items such as employee skill, customer loyalty, and business reputation cannot be shown in the books.
This means the true value and performance of a business may not be fully revealed.
Recording transactions in monetary terms excludes important non-financial and qualitative factors.
Ascertaining financial position, preventing fraud, and monitoring progress are advantages of accounting, not limitations.
Therefore, the correct limitation is that transactions are recorded only in monetary terms.
Answer:Option C – Transactions are recorded in monetary terms.