Day: January 8, 2024

Accounting Multiple Choice Question – 8 January 2024

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

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Information is relevant if it can make a difference in the decisions made by users.

According to the IASB’s Conceptual Framework, financial information can make a difference in decisions if it has which of the following features?

  1. Predictive value
  2. Comparative value
  3. Historic value
  4. Confirmatory value

Select ONE answer:

  1. 1 and 3 only
  2. 2 and 4 only
  3. 1 and 4 only
  4. 2 and 3 only

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 3

  1. Not correct
  2. Not correct
  3. Correct – Financial information can make a difference to decisions if it has predictive value (it can be used to predict future outcomes) or confirmatory value (it provides feedback about previous evaluations).
  4. Not correct

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