A-LevelAccountingThe accounting cycle9706/12 · May/June 2020 · Q11 Mark

A business depreciates its non-current assets. It then includes them in the statement of financial position at the net book value. Which concept is the business following?

Aduality

Bprudence

Crealisation

Dsubstance over form

✓ Correct answer

B: prudence

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Topic: The accounting cycle, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 1.

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