JAMB Accounting 2022 Objective — Question 3
Question 3 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2022 Objective paper, with the correct answer and a full explanation.
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3. The convention which states that 'profit must not be recognized until realized while all losses should be adequately provided for' is
- A. (A) materiality
- B. (B) objectivity
- C. (C) consistency
- D. (D) conservatismCorrect
Explanation
The conservatism (prudence) concept states that all possible losses must be provided for, but profit should only be recognized when it is actually earned.
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