Accounting Multiple Choice Question – 15 March 2022

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

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