BUISENESS MANAGEMENT
RECORD KEEPING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is NOT correct when maintaining financial records?
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Keeping documents which are difficult to obtain
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Keeping financial records as long as necessary
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Keeping unneeded paper work
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Keeping files in a safe place
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Explanation:
Detailed explanation-1: -Trial balance is not part of financial statements.
Detailed explanation-2: -Therefore, the correct answer is d. Gain Contingency Expenses.
Detailed explanation-3: -Financial statements are compiled in a specific order because information from one statement carries over to the next statement. The trial balance is the first step in the process, followed by the adjusted trial balance, the income statement, the balance sheet and the statement of owner’s equity.
There is 1 question to complete.