Chapter 8, Problem 5AA

To determine

To ascertain the term that best completes each sentences.

Explanation of Solution

Receipts, bank statements, invoices, payroll reports and all other written documentation help to justify an amount of revenue, deduction or credit listed on the tax return. Much relevant documentation should be preserved that is needed for sound recordings to track the business progress. Records will show how the company is going well, which products are selling, or what improvements that need to make. Good records will increase the chances of success in business. So it is important for business owners to document their expenses for their tax records.

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Economics Concept Introduction

Introduction: Recording is necessary to satisfy the financial obligations of the company and to provide information from which decisions can be taken regarding the future of the business.