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.
Frequently asked questions
What is the correct answer to this question?
To keep proper accounts of income, expenses, sales, and decisions
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
