What is the main benefit of keeping accounts in business?
Answer and explanation
Correct answer: It provides information about income, expenses, and profit
Business accounts systematically record transactions and show money received, money spent, assets, liabilities, and the resulting profit or loss. This information helps the entrepreneur control finances, compare performance, plan cash needs, and make informed decisions. Accounts cannot attract every customer or eliminate legal requirements. Therefore, option A states their main benefit.
Frequently asked questions
What is the correct answer to this question?
It provides information about income, expenses, and profit
Why is this the correct answer?
Business accounts systematically record transactions and show money received, money spent, assets, liabilities, and the resulting profit or loss. This information helps the entrepreneur control finances, compare performance, plan cash needs, and make informed decisions. Accounts cannot attract every customer or eliminate legal requirements. Therefore, option A states their main benefit.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
