Accounting 0452 · IGCSE · Limitations of accounting statements

Limitations of accounting statements — practice question

Which of the following is a limitation when comparing 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.

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