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O-LevelAccountingAccounting principles and policies7707/12 · May/June 2024 · Q171 Mark

Why is it important to match costs and revenues?

Aso that every debit entry has a corresponding credit entry
Bso that the business does not incur any losses
Cto enable a better comparison of profit from year to year
Dto ensure that the bank balance is accurate

✓ Correct answer

C: to enable a better comparison of profit from year to year

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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 2024 Paper 1 Variant 2, question 17.

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