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WAEC Financial Accounting 2017 Question 28

Question 28

Incomplete Records

A disadvantage of single entry system of book-keeping is that

  1. A.the profit for the period is reduced.
  2. B.it is difficult to determine profit for the period.
  3. C.total sales for the period is reduced.
  4. D.the owner of the firm withdraws money from the enterprise.
Show the answer and explanation

Answer: B (it is difficult to determine profit for the period.)

Explanation

Without full double entry there is no trial balance or proper accounts, so profit is hard to find accurately.