Day: August 26, 2017

Accounting Multiple Choice Question – 26 August 2017

The owner of a business has decided to create a provision for doubtful debts.

Which TWO accounting concepts are being applied?

Select ONE answer:

  1. Accruals and going concern
  2. Accruals and prudence
  3. Consistency and business entity
  4. Consistency and prudence
  5. Prudence and business entity

What is the prudence concept?
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This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 2 – The provision is a prudent one and an accrual to ensure it is booked in the right accounting period.

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