NECO Accounting 2023 Objective — Question 3
Question 3 of 50 from the National Examinations Council (NECO) Accounting 2023 Objective paper, with the correct answer and a full explanation.
Advertisement
A business should not lay claim to any profit before it is earned. This is in accordance with the
- 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.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.