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What is the main benefit of recording expenses in a small business?

Answer and explanation

Correct answer: It helps determine cost and profit correctly

An expense record shows how much money the business has spent and the purposes for which it was spent. When these records are compared with sales revenue, the owner can estimate total cost and determine whether the business has earned a profit or suffered a loss. Therefore, option A is correct. Recording expenses does not automatically attract customers, make goods free, or remove every business risk.

Related tags

Expense-RecordProfit-LossFinancial-ControlConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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