choose the correct answer: companies cannot keeps books on single entry system because of a.tax properties. b.legal provisions. c.both a and b
Answers
Answer:
option c is correct
Explanation:
hope it helps
Answer:
The correct answer is c.both a and b.
Explanation:
Under a single-entry system, real and nominal accounts are not kept. Under this approach, only personal and cash accounts, as well as cash and credit transactions (connected to personal accounts), are recorded. Because it does not record the two sides or accounts of all the financial transactions of the business, the single entry system is an incomplete system. Because the single entry method does not keep the nominal, it is impossible to determine the actual profit or loss. Due to legal restrictions, businesses cannot use a single entry system for their accounting. This system does not use a set of rigid accounting guidelines to determine profit margins or create financial statements.
Thus, keeping solely personal accounts and avoiding nominal and real accounts is quite frequent.