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Keeping of Accounting Records As A Soul of Business - SS1 Accounting Past Questions and Answers - page 1

1

Why are accounting records important for businesses?

A

To monitor cash flow and track performance

B

To track employee attendance

C

To manage marketing campaigns

correct option: a
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2

What information is included in accounting records?

A

Revenue and expenses

B

Customer feedback and complaints

C

Employee training records

correct option: a
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3

What can happen if a business doesn't maintain accurate accounting records?

A

They may make poor financial decisions

B

They may receive more customers

C

They may need to hire more employees

correct option: a
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4

What is the purpose of financial statements?

A

To calculate taxes owed

B

To provide a snapshot of a business's financial health

C

To track employee performance

correct option: b
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5

Why is compliance with tax and regulatory requirements important?

A

To avoid legal action

B

To attract more customers

C

To improve employee morale

correct option: a
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6

What can business owners do with the information provided by accounting records?

Business owners can use the information provided by accounting records to make informed financial decisions, monitor cash flow, and track the performance of their business.

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7

What are the consequences of not maintaining accurate accounting records?

The consequences of not maintaining accurate accounting records include poor financial decision-making, non-compliance with tax and regulatory requirements, and potential legal action or fines.

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