O-LevelAccountingAccounting principles and policies7707/12 · May/June 2020 · Q341 Mark

A trader wrote off the balance on a credit customer's account as irrecoverable. Which accounting principle was applied?

Abusiness entity

Bconsistency

Cmoney measurement

Dprudence

✓ Correct answer

D: prudence

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Topic: Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2020 Paper 1 Variant 2, question 34.

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