PRC-1 · Chapter 10 · Question 29 of 100
Which accounting principle dictates that a provision must be made for doubtful debts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The Prudence (Conservatism) concept
Explanation
The prudence concept requires that potential losses be recognized immediately when foreseeable, ensuring assets (Receivables) are not overstated.
More Preparation of Financial Statements MCQs
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