O-LevelAccountingAccounting principles and policies7707/12 · Oct/Nov 2025 · Q181 Mark
Why should prepaid income be shown in the financial statements of a business?
Aso that credit customers pay the correct amount
Bso that payments to credit suppliers are correctly recorded
Cso that the statement of financial position shows the correct current assets
Dso that the total income is matched against the total costs of the same period
✓ Correct answer
D: so that the total income is matched against the total costs of the same period
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