Accounting 0452 · IGCSE · Limitations of accounting statements

Limitations of accounting statements — practice question

Benson intended to compare his profitability against that of his competitors. However, the preparation of his financial statements was held up for a long time because a fire broke out in the room where the records were stored. What does this delay affect?

  • Athe comparability of the financial statements
  • Bthe relevance of the financial statements
  • Cthe reliability of the financial statements
  • Dthe understandability of the financial statements

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