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O-LevelAccountingAnalysis and interpretationOct/Nov 2021Paper 1 Q331 Mark

What is not a limitation of inter-firm comparison?

AAccounting records do not include the skills of the workforce.
BBusinesses may have different accounting policies.
CBusinesses may have different sales prices.
DThe available information may not relate to a typical year.

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of analysis and interpretation within the Accountingsyllabus. The examiner's mark scheme requires...

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

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About This O-Level Accounting Question

This multiple-choice question appeared in the Cambridge O-Level Accounting (7707) Oct/Nov 2021 examination, Paper 1 Variant 3. It tests the topic of Analysis and interpretation and is worth 1 mark.

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