A Level Accounting (9706)•9706/12/M/J/22
Explanation
Income Statement Basis for Trading Businesses Steps:
- Identify the question: Determine the accounting basis for a trading business's income statement.
- Recall standard practice: Trading businesses use accrual accounting to match revenues and expenses.
- Evaluate choices: Options combine unspecified items 1, 2, 3; D selects 2 only.
- Conclude: Without definitions of 1, 2, 3, resolution is impossible.
Not enough information.
Final answer: Not enough information.
Topic: Preparation of financial statements
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