O-LevelAccountingThe fundamentals of accounting7707/12 · Oct/Nov 2012 · Q11 Mark

For which purpose does a sole trader not use the information provided in his financial statements?

Ato assist with decision-making

Bto compare performance with previous years

Cto determine the amount of his bank overdraft

Dto plan for the future

✓ Correct answer

C: to determine the amount of his bank overdraft

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Topic: The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2012 Paper 1 Variant 2, question 1.

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