Day: October 20, 2022

Which ‘window dressing’ technique (if permitted) could be used to improve a company’s earnings per share figure?

Select ONE answer:

1. overstating the value of buildings by excessive revaluations
2. incorrectly classifying short term loans as long term loans
3. showing ‘cash equivalents’ as ‘cash’
4. failing to account for a material bad debt provision

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 4

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

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