A pocket calculator costs £9.50 and has a useful life of 5 years. The bookkeeper has decided to treat the purchase of the calculator as revenue expenditure.
Which accounting concept has been applied?
Select ONE answer:
- accruals
- materiality
- prudence
- substance over form
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 2
- Not correct
- Correct
- Not correct
- Not correct
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