WAEC Accounting 2015 Objective — Question 45
Question 45 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.
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Which of the following relates to cash basis of accounting?
- A. Accruals and repayments are considered
- B. Debtors and creditors are recorded
- C. Fixed assets are written off in the year of purchaseCorrect
- D. Profits are maximized
Explanation
Under the cash basis of accounting, fixed assets (and other expenditures) are written off/expensed fully in the year they are purchased/paid for, rather than being spread over their useful life.
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