- 1 Marks
Question
Which of the following is NOT a shortcoming of single entry book-keeping?
A. A trial balance is not available
B. Profits are overstated
C. There are no subsidiary books
D. There are no control accounts
E. There are no ledger accounts.
Answer
B
Explanation:
Single entry book-keeping may have several limitations, including the absence of trial balances, control accounts, and subsidiary books. However, overstating profits is not typically a shortcoming directly linked to single entry book-keeping. Therefore, the correct answer is option B.
- Tags: Book-keeping, Control Accounts, Trial Balance
- Level: Level 1
- Topic: Double-Entry Accounting Principles
- Series: MAY 2012
- Uploader: Theophilus