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O-LevelAccountingAccounting principles and policies7707/11 · May/June 2021 · Q341 Mark

Why should a trader match his costs for a financial year with the revenues for the same period?

Ato account for all liabilities
Bto account for money that has been paid in advance
Cto make sure outstanding income is included
Dto show the correct profit figure

✓ Correct answer

D: to show the correct profit figure

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About this question

Topic
Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2021 Paper 1 Variant 1, question 34.

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