Management’s Interest in Accounting System

The management of a business enterprise requires that complete and accurate accounting books and other records are maintained due to the following reasons:

  1. The business operations are easy to control when proper books and records are maintained
  2. Day to day records of debtors and creditors are indispensable
  3. Assets and other resources are easily safeguarded
  4. It is easy to prepare reliable and accurate financial statements if and only proper books of accounts are maintenance
  5. It is a statutory requirements to maintain these accounting records and books

What constitutes an adequate system of accounting depends upon a number of factors such complexity of the organisation, nature of the business and other factors.

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