O-LevelAccountingAnalysis and interpretation7707/12 · May/June 2025 · Q321 Mark

Which statement is a limitation of the comparison of the accounting ratios of different businesses?

AAccounting records include a value for the skills of the workforce.

BBusinesses may have the same accounting policies.

CBusinesses may have different sales prices.

DThe available information may not relate to a typical year.

✓ Correct answer

D: The available information may not relate to a typical year.

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2025 Paper 1 Variant 2, question 32.

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