Question 31
Accounting Concepts and Conventions'Transactions are governed by legal principles, but are nevertheless accounted for and presented in accordance with the substance and financial reality'. This is in compliance with the principle of
- A.substance over form
- B.prudence
- C.objectivity
- D.materiality.
Show the answer and explanation
Answer: A (substance over form)
Explanation
Recording the economic reality rather than the legal form is the substance over form principle.