Get premium membership and access questions with answers, video lessons as well as revision papers.

Why is it important for a business to keep financial records?

      

Give reasons why it is important for a business to keep financial records.

  

Answers


Maurice
(i) Used to determine growth of an enterprise.

(ii) Used for comparison with competitors.

(iii) Used in decision making by management.

(iv) Helps to calculate profits or losses made.

(v) Helps to determine credit worthiness of debtors.

(vi) Important in attracting investors.

(vii) Used by the government to calculate tax payable.

(viii) Used by lenders to determine suitability of a firm in a loan applications.
maurice.mutuku answered the question on August 16, 2017 at 09:17


Next: What problems may consumers encounter as they try to satisfy their wants?
Previous: What are the benefits of a youthful population in a country?

View More Business Studies Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions