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Question
State True or False.
Single Entry System is not useful for large business.
Options
True
False
Solution
True
Explanation: Single-entry system, i.e. a system of incomplete records, is usually followed by traders engaged in small businesses. It maintains records only of personal accounts and cash account. Moreover, the dual aspect of a transaction is ignored under this system. Therefore, it is not desirable to adopt this system for large business firms completing numerous transactions.
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