Match each feature or limitation of the single entry bookkeeping system with its corresponding accounting explanation.
- Incomplete Record KeepingFails to consistently apply the dual aspect concept for nominal and real transactions.
- Non-extraction of Trial BalanceArithmetical accuracy cannot be easily verified because total debit balances do not equal total credit balances.
- Emphasis on Personal AccountsPrimary focus is maintained only on cash balances and debtor/creditor transactions.
- Difficulty in Fraud PreventionLack of systematic internal control and auditing trails makes detecting errors and misappropriation very difficult.
Cevap
Incomplete Record Keeping corresponds to failing to apply the dual aspect concept consistently. Non-extraction of Trial Balance corresponds to the inability to verify arithmetical accuracy. Emphasis on Personal Accounts corresponds to focusing primarily on cash and debtor/creditor balances. Difficulty in Fraud Prevention corresponds to a lack of internal controls and audit trails.
Under a single entry bookkeeping system, dual entry rules are not strictly followed for every transaction. Consequently, real and nominal accounts are generally omitted, emphasizing mostly cash and personal accounts. This lack of complete records prevents the extraction of a Trial Balance to check arithmetical accuracy and severely hampers fraud prevention and auditability.
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Anahtar Kavram
Features and Limitations of Single Entry Bookkeeping