Accounting Multiple Choice Question – 27 November 2021

What is an example of the application of the generally accepted accounting practice of applying the practice of accounting entries that show the substance over form for a true and fair view (De facto vs De Jure)?

Select ONE answer:

1. accounting for stock losses
2. recording an asset acquired under a hire purchase agreement as a fixed asset
3. recording the premium on the issue of ordinary shares in a share premium account
4. writing off a debt from a customer in liquidation

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

1. Not correct
2. Correct
3. Not correct
4. Not correct

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