a. What are incomplete records?
b. Outline three limitations of keeping incomplete records
c. State three reasons a business keeps incomplete records
Explanation
a. Incomplete records are financial records that do not contain all necessary information required for the preparation of financial statements.
b.
- Difficulty in establishing accountability and ownership of assets and liabilities.
- Inability to accurately determine the profitability of the business.
- Difficulty in making informed decisions as the records do not provide adequate information
c.
- Lack of knowledge and skills required for record keeping
- Cost and time constraints
- The absence of regulatory requirements mandating complete record-keeping