Question

Write the word / term / phrase which can substitute each of the following Statements.

System of accounting normally suitable to small business organization.

Answer 1

Single entry system

Explanation: Generally, small businesses lack the required experience in recording transactions in a scientific and systematic manner. Allocation of funds for maintenance of complete accounting records is difficult for them. So, it is desirable for them to maintain incomplete records and ascertain the profit or loss. This is known as single-entry system and is particularly suitable for small-scale business organisations that have small number of transactions.