Short Answer Questions · Q2
Q.What are the possible reasons for keeping incomplete records?
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✓ Free question
Reasons: lack of accounting knowledge, low cost, less time, and convenience.
The main reasons businessmen keep incomplete records are:
- Lack of accounting knowledge — the system can be used by people who do not know proper accounting principles.
- Low cost — it is inexpensive, since a specialised accountant need not be appointed.
- Saves time — only a few books are maintained.
- Convenience — the owner records only the transactions important to the business.
✓Final answer
Incomplete records are kept because (i) the owner may not know proper accounting principles, (ii) it is an inexpensive method needing no specialised accountant, (iii) it takes less time as only a few books are kept, and (iv) it is convenient — only important transactions are recorded.
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