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WAEC Financial Accounting 2026 Question 17

Question 17

Accounting Concepts and Conventions

The concept which underlies the provision for doubtful debts is

  1. A.objectivity concept
  2. B.prudence concept
  3. C.going concern concept
  4. D.entity concept
Show the answer and explanation

Answer: B (prudence concept)

Explanation

Prudence says expected losses should be provided for, so a provision is made for debts that may not be paid.