Explain why the published accounts of a business might give a misleading description of its performance.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [5] Window dressing may occur that leads to inaccurate decision making; Non-financial factors will not be shown; Based on historic information that may not represent current levels of performance or position; Produced by inexperienced employee leading to errors; The accounts are presented in summary form, which may not provide relevant information for decision making; No predictive value. Accept any other valid response