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WAEC Financial Accounting 2025 Question 47

Question 47

Public Sector Accounting

One of the features of cash basis of accounting in public sector is that

  1. A.capital receipts are excluded from income in the accounting year.
  2. B.it focuses on revenue items only.
  3. C.trade debtors are recognized in the balance sheet.
  4. D.capital expenditure items are written off within the accounting year.
Show the answer and explanation

Answer: D (capital expenditure items are written off within the accounting year.)

Explanation

Under the cash basis, money spent on capital items is treated as spent in the year it is paid.