The accruals concept…?
Select ONE answer:
- applies to revenues and expenses only.
- applies to assets and liabilities only.
- applies to revenues, expenses, assets, and liabilities.
- is not a fundamental accounting concept.
Show your workings to arrive at your answer, and explain and justify your reasons:
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This multiple choice question is suitable for Accounting KS5 classes.
The answer is 3
- It is true that the accruals concept applies to revenues and expenses but not exclusively so – it also applies to assets and liabilities.
- It is true that the accruals concept applies to assets and liabilities but not exclusively so – it also applies to revenues and expenses.
- Correct
- The accruals concept is one of the fundamental accounting concepts, that is, those concepts referred to in SSAP 2.
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