A-LevelAccountingAnalysis and communication of accounting information9706/12 · Feb/Mar 2025 · Q201 Mark

Sunil was reviewing the statement of financial position of a business. The statement of profit or loss was not available. Why was Sunil interested in the current assets of the business?

Ato assess its future prospects

Bto be able to calculate efficiency ratios

Cto discover if it is profitable

Dto see if it is able to pay debts as they fall due

✓ Correct answer

D: to see if it is able to pay debts as they fall due

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Topic: Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2025 Paper 1 Variant 2, question 20.

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