a. What are incomplete records? b. Outline three limitations of keeping incomplete records c. State...
FINANCIAL
WAEC 2023
a. What are incomplete records?
b. Outlinethree limitations of keeping incomplete records
c. Statethree reasons a business keeps incomplete records
Explanation
a. Incomplete records are financial records that do not contain all necessary information required for the preparation of financial statements.
b.
- Difficulty in establishing accountability and ownership of assets and liabilities.
- Inability to accurately determine the profitability of the business.
- Difficulty in making informed decisions as the records do not provide adequate information
c.
- Lack of knowledge and skills required for record keeping
- Cost and time constraints
- The absence of regulatory requirements mandating complete record-keeping
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