Question

Why do most expense reports require employees to itemize expenses?

A: The business owner will always need to personally review all reports.
B: Creating paperwork helps keep those in the company employed.
C: Businesses assume that their employees are not generally honest.
D: Knowing exactly how money is spent makes for accurate accounting.

Answer 1

In any type of businesses, be it small-scale or on a global one, it is very important to accurately report all expenses that are done by employees for the sake of business operations. This is mainly due to (D) knowing exactly how money is spent makes for accurate accounting. This information is crucial for businesses since it would determine where the money is being spent most and the best way to decrease expenditure.