Accounting Multiple Choice Question – 22 February 2023

An item of stock originally cost £5,000, but has deteriorated badly and is written down to its estimated net realisable value of £2,000.

Which accounting principle has been applied?

Select ONE answer:

1. consistency
2. materiality
3. prudence
4. Money measurement

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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