Question 34
Accounting Concepts and ConventionsA trader paid N15,000 on rent for 15 months but charged N12,000 to the Profit and Loss Account for the year. This is the concept of
- A.accrual
- B.materiality
- C.prudence
- D.going-concern.
Show the answer and explanation
Answer: A (accrual)
Explanation
Only the 12 months' rent belonging to the year is charged: the accruals (matching) concept.