adept entry and incomplete records refers to a situation where fear legal proceeding be not recorded and adjudicated according to the accounting principles.
This mode of single entry and incomplete records has got consequences;
It promotes fraud because there is neediness of control of the business transactions. Data is not enough to conjure up that someone is cheating or stealing from the geological formation.
It is hard to evaluate the performance and financial position of the business because the debit entries do not correspond with the credit entries. The profits or losses are not well assessed.
In case the organization needs to sell out shares of the business, it becomes very difficult to mend the value of the shares. The value of the business is hardly evaluated.
Wrong and brusk decisions are taken because the information is not sufficient in order to take the best decisions for a better phylogeny of the organization.
It is hard for tax assessors to evaluate the value of payable taxes by a business that has incomplete records.
Financial aid is unremarkably refused to such businesses with incomplete financial records, because there is no room the financial institution may be ensured of getting the monetary resource back other than by analyzing the financial statements of an organization.
However, for businesses using single entry records, it does not require a lot of companionship from the accountant; hence it reduces on the cost of labor for the business.
And too the single entry and incomplete records can be regarded as a solution in case of loss of records through accidents such as flood, fire or even deal intention as a result of fraud.
Some businesses are still using this practice for their bookkeeping because of;
ØSome business owners do not appreciate the value of their businesses, this means in some...If you want to get a full essay, order it on our website: Ordercustompaper.com
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