Troy said:

Precision is accuracy adjusted for context.

That's not how I would have put it, but I agree if you mean

essentially what I say in my last paragraph below.

I disagree. Both are inaccurate but 3.14 is precise enough in my

circles

I'm not sure you've yet grasped the difference in meanings.

Precision is a measure of how close it is *possible to get*,

within the constraints of representation, to the value you're

trying to represent. Accuracy is a measure of how close to the

value you *actually are*, bearing in mind the precision available.

3.14 is not very precise, but it is as accurate as it's possible

to get with two places after the decimal. The true value is less

than 0.005 away. 3.142592 is 10,000 times as precise, but it is

very far off being as accurate as posisble to 6 places because the

most accurate representation at that precision is 3.141593, so the

true value is not at all less than 0.0000005 away, but about 2000

times as much. The high precision gives a false sense of accuracy.

Figures presented in a Profit & Loss Account and Balance Sheet are

not often to penny precision, are very often to pound precision,

and for large entities can be to precisions of thousands or

millions of pounds. In all cases, though, they are expected to

be completely accurate within the constraints of their precision.