The Accounting Principle Underpinning the Practice of Providing for Doubtful

question 61

Multiple Choice

The accounting principle underpinning the practice of providing for doubtful debts is the:

• A) matching convention.
• B) historical cost convention.
• C) dual aspect convention.
• D) going concern convention.

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Definitions:

Possessors

Individuals or entities that have control over or hold property, but do not necessarily own it.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Social Guests

Individuals who are invited to visit someone's home or attend a private function or gathering without any expectation of providing a service or receiving payment.

Licensees

Individuals or entities that are granted permission to do certain things by another’s leave, such as occupying or using someone’s property.