Day: May 24, 2025

Accounting Multiple Choice Question – 24 May 2025

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

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On which of the fundamental accounting principles are the directors of a company expected to report in the company’s annual financial statements?

Select ONE answer:

  1. The going concern status of the company
  2. The materiality of specific transactions
  3. The accruals approach to accounting
  4. The consistency of treatment of items or transactions

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 == > The directors must state that the financial statements are prepared on the going concern basis, if this is the case. They must also state whether there are any material uncertainties about the company’s ability to continue as a going concern for at least 12 months from the date of approval of the financial statements.
  2. Not correct
  3. Not correct
  4. Not correct

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