Visual representation of small business financial literacy - decorative

Module 2: Recordkeeping


If you wish, feel free to take a little pre-test to test your knowledge of recordkeeping practices, tools and rules. A link to the answers will show up on the right under the Modules navigation bar as you scroll down.

  1. Which of the following are reasons for keeping good records? Select all that apply.

a. Business detail tracking
b. Planning
c. Legal compliance
d. Tax preparation

2. When creating a recordkeeping system, it’s a good idea to _____________.

a. Wait until enough information is available to get started.
b. Start simple and refine later.
c. Get a sophisticated system to anticipate future needs.
d. Start after one year of operation.

3. Which of the following should be done before purchasing business software?

a. Create an information technology (IT) department
b. Get a business credit card
c. Evaluate your business needs
d. Consult with the Internal Revenue Service (IRS)

4. Which of the following are recordkeeping tools?

a. Manila folder
b. Computer system
c. File hosting system
d. None of the above
e. All of the above

5. Which type of small business should utilize good recordkeeping practices?

a. Sole proprietor
b. Partnership
c. Limited Liability Partnership
d. Corporation
e. None of the above
f. All of the above

6. Recordkeeping is the orderly and _________________ practice of storing business records.

a. Corporate
b. Legal
c. Financial
d. Disciplined