Question

Making provision for doubtful debts is as per …… convention 

A Consistency Correct Answer Incorrect Answer
B Disclosure Correct Answer Incorrect Answer
C Conservatism Correct Answer Incorrect Answer
D Materiality Correct Answer Incorrect Answer

Solution

According to  Convention of conservatism , you should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur.

Practice Next

Relevant for Exams:

×
×