Single Entry Disadvantages/Limitations - SS2 Accounting Past Questions and Answers - page 1
What type of information does a single entry system provide?
Complete information about financial transactions
Limited information about financial transactions
Detailed analysis of financial transactions
None of the above
What is the risk associated with a single entry system?
Risk of errors and fraud
Risk of bankruptcy
Risk of overpaying taxes
None of the above
What is the scalability of a single entry system?
Suitable for businesses with a high volume of transactions
Suitable for businesses with a low volume of transactions
Suitable for businesses of any size
None of the above
What is the main disadvantage of a single entry system?
It provides too much information
It is too accurate
It does not provide enough information for financial analysis
None of the above
Is a single entry system widely accepted by external stakeholders?
Yes, it is widely accepted
No, it is not widely accepted
It depends on the type of business
None of the above
What is the risk associated with a single entry system?
The risk associated with single entry system is the risk of errors and fraud.
Is a single-entry system suitable for businesses with a high volume of transactions?
No, it is not suitable for businesses with a high volume of transactions.