Importance of Branch Account - SS3 Accounting Past Questions and Answers - page 1
What is the importance of a branch account?
Maintaining control over branch operations
Filing for bankruptcy
Increasing taxes
What information is contained in a branch account?
Financial transactions of a company's headquarters
Financial transactions of a company's subsidiaries
Financial transactions of a company's suppliers
Why is a branch account necessary for tax compliance purposes?
It helps to ensure that the branch is complying with local tax laws and regulations
It helps to increase the branch's revenue
It helps to reduce the branch's expenses
What does a branch account promote?
Accountability
Financial irregularities
Fraud
What does a branch account allow for?
Evaluation of the branch's performance
Increased expenses for the branch
Decreased revenue for the branch
What is the purpose of a branch account?
The purpose of a branch account is to capture the financial transactions of a branch of a company.
Name two benefits of a branch account.
Benefits of a branch account include maintaining control over branch operations, and evaluating the branch's performance.