WAEC Accounting 2022 Objective — Question 27

Question 27 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

Provision for doubtful debts is made in conformity with

A. materiality concept
B. prudence conceptCorrect
C. money measurement concept
D. business entity concept

Explanation

The prudence (conservatism) concept requires an accountant to anticipate possible losses (such as doubtful debts) so as not to overstate profit or assets.

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