WAEC Accounting 2014 Objective — Question 43

Question 43 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

The concept applied in answering the previous stock-valuation question is

A. matching
B. consistency
C. prudenceCorrect
D. entity

Explanation

The prudence concept states that profits (and asset values like stock) are not recognised/overstated until they are realised — stock is stated at the lower of cost and net realisable value.

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.

Create free account

More questions from Accounting 2014 Objective More Accounting past papers