Accounting Multiple Choice Question – 15 March 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

An investor is looking at the financial statements of a company in which he may decide to invest.

Which item helps him to rely on the financial statements?

Select ONE answer:

  1. consistency of accounting policies from one period to the next
  2. estimation of accounting provisions relying on the opinion of managers
  3. inflation in the currency in which the financial statements are prepared
  4. lapse of time since the date of the statement of financial position and when he reads the documents

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: