Accounting Multiple Choice Question – 29 December 2024

As a result of reading the financial statements of Alex plc, Lucy decided to increase her shareholding in the company.

In terms of the Conceptual Framework for Financial Reporting, this appears to confirm that the information in Alex plc’s financial statements was?

Select ONE answer:

1. Positive
2. Timely
3. Material
4. Relevant

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 == > When financial information influences the decisions of users then it is said to be relevant.

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