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WAEC Accounting 2014 Objective — Question 29

Question 29 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

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The concept that states that a business should not lay claim to any profit before it is earned with reasonable certainty is

  • A. consistency concept
  • B. prudence conceptCorrect
  • C. accrual concept
  • D. going concern concept

Explanation

The prudence concept states that profits should not be recognised/anticipated until they are realised with reasonable certainty.

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