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O-LevelAccountingThe fundamentals of accounting7707/12 · May/June 2025 · Q331 Mark

Maluti has a trading business that has a bank overdraft and makes a profit. Why would the government be most interested in the financial statements of Maluti?

Ato compile business statistics
Bto estimate trade payable days for Maluti
Cto plan remedial action where necessary
Dto see whether Maluti can repay his debts when due

✓ Correct answer

A: to compile business statistics

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Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2025 Paper 1 Variant 2, question 33.

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