A-LevelAccountingFinancial reporting and ethical considerations9706/12 · May/June 2011 · Q21 Mark

There is great uncertainty about the continuance of a business. This has caused the proprietor to make a large reduction in the valuation of the year-end inventory. Which accounting principle does this illustrate?

Agoing concern

Bmatching

Cmateriality

Dsubstance over form

✓ Correct answer

A: going concern

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Topic: Financial reporting and ethical considerations, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 2.

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