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JAMB Principles of Accounts 2007 Question 48

Question 48

Introduction to Accounting

One of the benefits of book-keeping records is that they

  1. A.give prospective investors accurate and direct information for decision-making
  2. B.provide the public and creditors with details of the operations of an entity
  3. C.give legal backing to all the transactions undertaken by a business entity
  4. D.provide information without which the task of management would be difficult.
Show the answer and explanation

Answer: A (give prospective investors accurate and direct information for decision-making)

Explanation

Proper records give investors reliable information to decide whether to put money into the business.