Day: July 15, 2022

A company excludes from its Balance Sheet machinery for which spare parts are no longer obtainable.

Which concept is being applied by the company?

Select ONE answer:

1. going concern
2. materiality
3. prudence
4. 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 3

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

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