A-LevelAccountingFinancial reporting and ethical considerations9706/12 · May/June 2012 · Q41 Mark
A business buys a machine on hire purchase for $50 000. Although it will not own the machine until it has paid the final instalment, it has made the following entries: debit credit Machinery account $50 000 Bank account $5 000 Finance company account $45 000 Which accounting principle has been applied?
Agoing concern
Bmatching
Cprudence
Dsubstance over form
✓ Correct answer
D: substance over form
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