A-LevelAccountingThe accounting cycle9706/12 · May/June 2015 · Q221 Mark

An investor is looking at the financial statements of a company in which he may decide to invest. Which item helps him to rely on the financial statements?

Aconsistency of accounting policies from one period to the next

Bestimation of accounting provisions relying on the opinion of managers

Cinflation in the currency in which the financial statements are prepared

Dlapse of time since the date of the statement of financial position

✓ Correct answer

A: consistency of accounting policies from one period to the next

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2015 Paper 1 Variant 2, question 22.

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