Question
QUESTION 7 Which of the following examples is an example of the application of the prudence concept? A. An entity has trade receivables with credit
QUESTION 7
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Which of the following examples is an example of the application of the prudence concept?
A. An entity has trade receivables with credit terms of more than 180 days does not make provision for bad and doubtful debts.
B. Expected gain on a construction contract is recognized immediately in the statement of profit or loss.
C. Inventory costing RM2,000 is recorded at the net realizable value of RM2,200 in the financial statements.
D. Expected loss on a construction contract is recognized immediately in the statement of profit or loss.
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Auditing And EDP Objective Questions And Explanations
Authors: Irvin N Gleim, William A. Hillison
4th Edition
0917537432, 978-0917537431
