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Accounting concept

SSaroni3mo ago

Making an allowance for receivables is an example of which concept?

Accruals

Going concern

Materiality

Fair presentation

John MoffatJohn MoffatTutor3mo ago#1

Of the fundamental concepts it is the accruals (or matching) concept - charging expenses in the same period in which the revenue is accounted for.

SSaroni3mo ago#2

But the bpp study kit says that it's fair presentation. I'm confused

John MoffatJohn MoffatTutor3mo ago#3

It is fair presentation also, but the accruals concept is more correct.

SSaroni3mo ago#4

Got it, thank you!

John MoffatJohn MoffatTutor3mo ago#5

You are welcome

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