NABTEB Accounting 2023 Objective — Question 3
Question 3 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2023 Objective paper, with the correct answer and a full explanation.
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A business should not lay claim to any profit before it is earned. This is in accordance with the (a) consistency concept (b) prudence concept (c) dual aspect concept (d) going concern concept
- A. consistency concept
- B. prudence conceptCorrect
- C. dual aspect concept
- D. going concern concept
Explanation
The prudence concept requires that profit is not recognised until it is earned, to avoid overstating assets or profits.
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