Accounting Multiple Choice Question – 21 June 2026

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

Which ONE of the following circumstances would reduce the reliability of the results of analytical procedures?

Select ONE answer:

  1. Detailed information is available and analysed by department
  2. Budgeted figures in the past have proved to be highly optimistic
  3. Reliable industry data are available
  4. NO deficiencies in the internal control system have been identified in the past

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 – If budgets are not realistic, they will not provide a reasonable basis for comparison with actual.
  3. Not correct
  4. Not correct

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