Descartes Long Quiz 5 Business Records and Financial Statements

What is one of the main reasons for keeping business records?

• To increase product prices

• To track financial activities

• To reduce employee salaries

• To avoid customer feedback

During a financial review, Mia discovered various aspects of her business operations. She was particularly focused on understanding the advantages of maintaining accurate business records. However, she was puzzled by one statement that seemed out of place. Which of the following is NOT a benefit of keeping business records?

• Helps with taxes

• Shows business performance

• Increases employee turnover

• Helps attract investors

In a small business, Mason is responsible for keeping track of the company's finances. He needs to monitor the flow of money coming in from sales and going out for expenses. What type of record should Mason maintain to effectively manage this?

• Employee records

• Inventory records

• Financial records

• Supplier records

Ava is reviewing the records for her company and needs to find the document that contains contracts and attendance information for her employees.

• Tax records

• Employee records

• Inventory records

• Customer records

What is the purpose of inventory records?

• Track employee performance

• List goods bought, sold, or stored

• Record customer feedback

• Monitor tax payments

Why is legal compliance important in record keeping?

• To increase profits

• To meet government requirements

• To reduce marketing costs

• To improve customer service

Grace runs a small business and is trying to understand how long she must keep her financial records for tax purposes.

• 1–2 years

• 3–4 years

• 5–7 years

• 10 years

What can happen if a business fails to keep proper records?

• Increased customer loyalty

• Legal action or fines

• Better employee performance

• More product sales

Avery is a small business owner who wants to ensure her company remains profitable. She knows that understanding her cash flow is crucial for making informed decisions. What does tracking cash flow help with?

• Hiring employees

• Budgeting and forecasting

• Designing products

• Marketing strategies

Harper runs a small business and is reviewing her financial statements. She wants to identify which of the following is a source of income for her business.

• Employee bonuses

• Sales of products

• Inventory losses

• Tax refunds