O-LevelAccountingAccounting principles and policies7707/12 · May/June 2020 · Q351 Mark

A limited company applied the accounting objective of comparability in preparing its financial statements. What is the effect of this on the interested parties?

AThey can be sure that information in the financial statements is up to date.

BThey can identify similarities with the financial statements of other businesses.

CThey can understand the financial statements easily.

DThey can use the financial statements in decision-making.

✓ Correct answer

B: They can identify similarities with the financial statements of other businesses.

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2020 Paper 1 Variant 2, question 35.

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A limited company applied the accounting objective of comparability in preparing its financial statements. What is the effect of this on the interested parties?

✓ Correct answer

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