Multiple choice

---------- Establishes the relationship between the items of the profit &Loss account and the Balance sheet

  1. Recording

  2. Summarising

  3. Analysing

  4. Iterpreting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Analysis establishes relationships among financial statement items, such as linking profit and loss figures with balance sheet items through ratios and comparisons. Summarising prepares the statements, while the stated interpreting step is not this linking function.

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