Alberta Written Barber Practice Exam

Keeping records of daily sales and services is advisable for which duration?

1. 1-3 years

2. 3-5 years

3. 5-7 years

4. 7-10 years

The correct answer is: 5-7 years

Keeping records of daily sales and services for a duration of 5-7 years is advisable because it aligns with standard accounting practices and regulatory requirements. This timeframe allows businesses to maintain sufficient records for audit purposes, ensure compliance with taxation laws, and track financial performance over multiple fiscal years. In the event of an audit by tax authorities, records from the last five to seven years are usually required for it to be comprehensive and to adequately justify the reported income and any deductions. Furthermore, having this documentation can protect a business from potential disputes regarding services rendered or sales figures. Maintaining records beyond this 5-7 year window, while sometimes beneficial for long-term business analysis or historical reference, can often lead to unnecessary clutter and difficulty in managing files. Hence, keeping records in this range strikes a vital balance between compliance, efficiency, and practicality.