Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

Financial statements supply users with information that helps them assess a business’s financial performance.

(a)[3]

State three reasons why comparing financial ratios between businesses in the same industry may be difficult.

Worked solution & mark scheme

This 3-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Use of different accounting policies” …