Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

A business owner got an order from a customer on the final day of the financial year, 31 December, and sent out the goods on that same day. The customer was invoiced several days afterwards, on 3 January. Which accounting concept should be used when deciding whether the sale should be entered on 31 December or 3 January?

  • Aconsistency
  • Bobjectivity
  • Cprudence
  • Drealisation

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