Multiple choice

Which of the following accounting concepts suggests that incomes and expenses should be recognised as and when they are earned and incurred, irrespective of whether the money is received or paid?

  1. Legal aspect concept

  2. Accrual concept

  3. Accounting period concept

  4. Money measurement concept

  5. Value added concept
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This accounting concept suggests that incomes and expenses should be recognised as and when they are earned and incurred, irrespective of whether the money is received or paid.

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