WAEC Accounting 2023 Theory — Question 2

Model answer

1. The business cannot extract a trial balance to check the arithmetical accuracy of ledger entries. 2. The accuracy of any accounts cannot be verified. 3. The business cannot make good business decisions, and cost control will be difficult. (Other acceptable: it can lead to the collapse of the business; fraud may easily be committed since there can be no check or proof of transactions; financial statements prepared from incomplete records will not be accepted for tax purposes.)