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WAEC Financial Accounting 2021 Question 34

Question 34

Accounting Concepts and Conventions

The concept that enables a business to determine the actual profit or loss for a particular period is

  1. A.accrual concept.
  2. B.business entity concept.
  3. C.consistency concept.
  4. D.going concern concept.
Show the answer and explanation

Answer: A (accrual concept.)

Explanation

Accruals match income and expenses of the period, giving the true profit for that period.