Incomplete Records (Single Entry): Meaning/Definition - SS2 Accounting Past Questions and Answers - page 1
What are incomplete records accounting?
A system of accounting where all financial transactions are recorded
A system of accounting where only a few financial transactions are recorded
A system of accounting where all transactions are recorded except for cash transactions
A system of accounting used by large corporations only
Which of the following is not tracked in single-entry bookkeeping?
Accounts payable
Accounts receivable
Inventory
Cash account
Who typically uses single-entry bookkeeping?
Large corporations
Sole proprietors
Non-profit organizations
Government agencies
What can be difficult to prepare with incomplete records?
Financial statements
Budgets
Marketing plans
Human resources reports
Why is it important to keep accurate financial records?
To make the business look good
To make the tax authorities happy
To avoid financial losses and legal issues
To keep the employees motivated
What is the primary disadvantage of incomplete records accounting?
The primary disadvantage of incomplete records accounting is that it may not provide the level of detail required for accurate financial reporting and analysis.
Who is most likely to use single-entry bookkeeping?
Small businesses, sole proprietors, and individuals who have simple financial transactions are most likely to use single-entry bookkeeping.