Question

Maintaining records of various properties helps _____________.

• A. in ascertaining profit or loss of the business
• B. to ensure there is no unauthorised use or disposal of any asset or property of the business
• C. in fulfilling the statutory obligation
• D. in giving the look of a professionally managed company

Answer 1

The correct option is B to ensure there is no unauthorised use or disposal of any asset or property of the business

Assets purchased for the business are to be recorded in the books of account of the business. This is mandatory to keep a proper records of all such assets to ensure that the business assets are used for business purposes only. No unauthorized uses for business assets should be done.