Day: March 5, 2025

Accounting Multiple Choice Question – 5 March 2025

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

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Which accounting principle states that an item in the financial statements would make a difference if its omission or misstatement would mislead the reader of the financial statements under consideration?

Select ONE answer:

  1. The going concern principle
  2. The materiality principle
  3. The cost-benefit principle
  4. The substance over form principle

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 2

  1. Not correct
  2. Correct == > The accounting principle that states that an item in the financial statements would make a difference if its omission or misstatement would mislead the reader of the financial statements under consideration is the materiality principle.
  3. Not correct
  4. Not correct

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