Which of the following is not used in solving problems of incomplete records?
Answer Details
The balance sheet is not typically used in solving problems of incomplete records.
Incomplete records refer to situations where a business's financial records are not complete or accurate, such as when some transactions are missing or improperly recorded. To solve such problems, accountants typically rely on various methods, such as control accounts, statement of affairs, and cash book.
Control accounts are summary accounts used to keep track of the balances of individual accounts, such as accounts receivable and accounts payable. By comparing the control account balances with the corresponding individual account balances, accountants can detect errors or omissions in the records.
A statement of affairs is a summary of a company's assets and liabilities at a particular point in time. It can be used to determine the company's net worth and to identify any discrepancies in the records.
A cash book is a record of all cash transactions, including receipts and payments. It is used to track the company's cash balance and to identify any missing or improperly recorded transactions.
The balance sheet, on the other hand, is a financial statement that shows a company's assets, liabilities, and equity at a particular point in time. While it can be useful in providing an overview of a company's financial position, it is not typically used in solving problems of incomplete records, as it does not provide detailed information about individual transactions.