The following are importance of branch account except

JAMB Accounting 2023 👁 20 views

The following are importance of branch account except

  1. it enable the organization to determine the branch that is making either profit or loss
  2. it allows proper control over the branch by the head office
  3. it assist the organization to determine the performance of a branch manager
  4. it allows fraud and wastage of resources ✓

Explanation

Branch accounts help track each location’s performance separately. They show which branches are profitable, help control operations, and evaluate manager effectiveness. These are all positive benefits.

Branch accounts actually prevent fraud and waste by providing oversight and accountability. Saying they “allow” fraud is the opposite of their purpose.

Think of branch accounts as scorecards. They reveal problems and prevent waste, not enable them.

pastquestions.ng