According to the Keown book, what are the three primary reasons for maintaining financial records?
What will be an ideal response?
Answer: First, without adequate records, it is extremely difficult to prepare taxes. Second, a strong record-keeping system allows you to track expenses in order to know exactly how much you're spending and where you're spending it. Without that knowledge, you will not have control over your finances. Third, organized record-keeping makes it easier for someone else to step in during an emergency and understand your financial situation.
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You have your own Internet business where you buy close-out stuff from stores and sell them on-line at a higher price. Your only cost is what you pay for the items and the shipping charge per item. Last year you bought and then sold 1,000 pieces. This year you expect to double that, at unchanged purchase and sale prices. Which of the following will be higher this year than last?
a) profits b) profit margin c) both d) neither
Only four states of the United States have adopted all or part of the Uniform Limited Liability Company Act (ULLCA) as a state statute
Indicate whether the statement is true or false