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Why is record keeping important in business?

Answer and explanation

Correct answer: To keep proper accounts of income, expenses, sales, and decisions

Accurate records show money received, money spent, sales made, liabilities, and important decisions. They help calculate profit, compare performance, detect errors, prepare budgets, and provide information for applicable legal or tax responsibilities. Records are not intended to stop customers, increase mistakes, or avoid rules. Therefore, maintaining proper business accounts is the correct purpose.

Related tags

Record-KeepingFinancial-ManagementEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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