Which of the following is a limitation of incomplete records system?

A trial balance cannot be prepared

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The accuracy of accounts cannot be ensured.

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Correct ascertainment and evaluation of the financial result of business operations cannot be made

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All of the above

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Solution

The correct option is C
All of the above

All of the above are the limitations.

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Similar questions

State true or false:

1) A Trial balance is an account.
2) A Trial balance is helpful for preparation of final accounts.
3) A Trial balance is most important document.
4) A Trial balance may be prepared on any date.
5) In Trial balance opening stock is recorded in credit balance column.
6) Both sides total of an account are taken in Gross Trial Balance.
7) Purchase account always shows debit balance.
8) A Trial balance is a List of Ledger balances.
9) A Trial balance does not ensure accounting accuracy.
10) A Trial balance shows only arithmetical accuracy.

Q. __________ does not help in assuming accuracy of balances of various accounts and preparation of the financial statements.

Q. State whether the following statement is True or False.
A Trial balance does not ensure accounting accuracy.

______ is prepared to ascertain the financial result of a business operation over a given period of time and ______ shows the financial position of a business at a particular date.

Analysis of profitability, liquidity and solvency of the business can be done under incomplete records system.

Which of the following is a limitation of incomplete records system?

The correct option is C All of the above All of the above are the limitations.

The correct option is C
All of the above

All of the above are the limitations.