Accounts from Incomplete Records — Account STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceAccountAccounts from Incomplete Records1 Mark
Question
Why do big business houses not maintain their accounts under single entry system?
✓
Answer
Big business houses not maintain their accounts under single entry system because:
Financial Position of the Business cannot be Assessed: In the absence of assets accounts, it is difficult to determine correct financial position of the business on any particular day by preparing a Balance Sheet.
Difficult to Ascertain the Value of Business: The records being inadequate, it is difficult to value the business, especially goodwill.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.