WAEC Accounting 2023 Theory — Question 3

Model answer

1. Lack of resources to operate double entry records. 2. Lack of qualified personnel to operate the system. 3. The size of the business may not necessitate the implementation of a full set of accounting records. (Other acceptable: lack of awareness of the need to operate a double entry system; destruction of some or all financial records as a result of natural disaster; deliberate attempt by management to evade tax; when the business just begins operations; it is less cumbersome/more convenient to maintain.)