Business 9609 · AS & A Level · Business finance

Business finance — practice question

(a)[2]

Give the meaning of the term ‘window dressing’ in relation to published accounts.

(b)[3]

Briefly explain in what way window dressing may reduce the usefulness of published accounts.

Worked solution & mark scheme

This 5-mark question has a full step-by-step worked solution and mark scheme. One marking point: Window dressing is when company accountants show published accounts in a very favourable light to shareholders/investors so that the business appears to be well run and/or to attract more investment.

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