Discuss Two Advantages and Two Disadvantages of Using Primary Data

question 34

Essay

Discuss two advantages and two disadvantages of using primary data.

Recognize the components and support documents of a voucher system.

Comprehend the necessity of cash control measures for protecting against theft and misuse.

Analyze bank reconciliation components to adjust the book and bank balances.

Apply knowledge of miscellaneous bank transactions (NSF checks, bank service charges) in reconciling and recording in company books.

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Definitions:

Economic Systems

The organized way a society allocates its resources and distributes goods and services among its population.

Recession

A short-term economic slump characterized by a reduction in business and industrial activities, usually signified by a GDP decrease over two back-to-back quarters.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's growing over time.

Business Quarters

Divisions of a fiscal year into four three-month periods, used by companies to report financial results and forecast future performance.