Question

While closing its books on 31 March 2022, ABC and Co. did not pass any adjustment entry for outstanding salaries for the month of March 2022. The accountant argued with the auditor that it was not necessary to record the outstanding salaries as no cash payment had been made till 31 March. Which basic accounting concept has been violated in this case?

A Going concern concept
B Money measurement concept
C Business entity concept
D Accrual concept
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