NABTEB Accounting 2020 Objective — Question 27

Question 27 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

Provision for doubtful debts is made in conformity with

A. materiality concept
B. prudence conceptCorrect
C. money measurement concept
D. business entity concept

Explanation

The prudence concept requires an accountant to exercise caution and make provision for anticipated losses such as doubtful debts.

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