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What is the benefit of keeping accounts in business?

Answer and explanation

Correct answer: Keeping correct records of income and expenses

Keeping accounts creates an organised record of transactions such as sales, purchases, income, expenses, assets, and liabilities. These records help the owner calculate profit or loss, control cash, prepare budgets, and make informed decisions. Destroying bills or failing to track money removes evidence and weakens control. Therefore, option A states the main benefit.

Related tags

AccountingBusiness RecordsConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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