Making an allowance for receivables is an example of which concept?
Accruals
Going concern
Materiality
Fair presentation
Ask the Tutor ACCA FA
Making an allowance for receivables is an example of which concept?
Accruals
Going concern
Materiality
Fair presentation
Of the fundamental concepts it is the accruals (or matching) concept - charging expenses in the same period in which the revenue is accounted for.
But the bpp study kit says that it's fair presentation. I'm confused
It is fair presentation also, but the accruals concept is more correct.
Got it, thank you!
You are welcome
