Question

Single entry system is not useful for large business. (State True or False)

Answer 1

TRUE....

IT IS USEFUL FOR ONLY SOLE TRADER.

Answer 2

Answer:

True, single entry system is not useful for the large business.

Explanation:

Single-entry accounting is simple and straightforward but it is not useful for large business because there are more chances of fraud and error in the company's account.

Single entry system is incomplete system because it does not record the two aspects or accounts of all the financial transactions of the business. Under single entry system, the true amount of profit or loss can not be ascertained because it does not maintain the nominal.