What is the main reason for keeping records in business?
Answer and explanation
Correct answer: To keep correct record of income, expenses, and sales
Business records provide organised evidence of transactions such as sales, purchases, income, expenses, and amounts due. They help the owner measure performance, control cash, prepare accounts, and make informed decisions. Hence option A is correct. Forgetting information, confusing customers, or hiding goods is not the purpose of record-keeping.
Frequently asked questions
What is the correct answer to this question?
To keep correct record of income, expenses, and sales
Why is this the correct answer?
Business records provide organised evidence of transactions such as sales, purchases, income, expenses, and amounts due. They help the owner measure performance, control cash, prepare accounts, and make informed decisions. Hence option A is correct. Forgetting information, confusing customers, or hiding goods is not the purpose of record-keeping.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Business, Trade and Commerce.
