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WAEC Financial Accounting 2025 Question 33

Question 33

Accounting Concepts and Conventions

Sales for the year 2021:
Credit: Le 70,000
Cash: Le 30,000
The accounting concept underlying the recording of Le 100,000 in the sales account is

  1. A.going concern concept.
  2. B.realization concept.
  3. C.materiality concept.
  4. D.consistency concept.
Show the answer and explanation

Answer: B (realization concept.)

Explanation

Credit sales count as sales when the goods are delivered, not when paid for: the realization concept.