Correct Answer:
C. Both A & B
To ensure transparency and verify the legitimacy of transactions, an officer must be able to trace the entire supply chain. Option C is correct because knowing both the suppliers (persons/firms from whom purchases were made) and the customers (firms to whom sales were made) allows for a complete audit trail. This helps in confirming the authenticity of transactions, preventing illicit trade, and ensuring compliance with tax and trade regulations.
- Option A alone provides only purchase information.
- Option B alone provides only sales information.
- Neither provides a full picture for comprehensive verification.