What type of accounting might a sole trader typically perform?

A sole trader typicallymaintains their own bookkeeping because, as an individual business owner, they are responsible for keeping accurate records of all financial transactions related to their business. This often includes maintaining a simple set of accounts that track income and expenses, which helps them understand their financial position and make informed decisions.

Since a sole trader usually operates independently, they do not have the resources or need for an extensive accounting team, nor do they rely on the government to handle financial records. While external auditing may be relevant for larger businesses, sole traders often manage their bookkeeping tasks themselves, making option B the most accurate description of their accounting activities.