MANAGEMENT

Detailed explanation-1: -Give two reasons that the physical records created by budgets are important. because (1) they are a record of financial information that otherwise would be too difficult to keep track of, and (2) they provide the framework for a company’s annual financial reports.

Detailed explanation-2: -What are some types of financial records that businesses must keep? The balance sheet-reports assets, liabilities, and owner’s equity as of a specific date. The income statement-reports sales, expenses, and net profit or loss for a specified time period.

Detailed explanation-3: -Knowing that, a good rule of thumb is to save any document that verifies information on your tax return-including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts-for three to seven years.