Accounting Multiple Choice Question – 20 November 2023

In preparing the income statement, only realised profits and not anticipated profits must be brought into account.

In addition, all possible losses must also be taken into account immediately.

Which accounting principle does this describe?

1. accruals
2. consistency
3. going concern
4. prudence

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 4

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

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