Neco Model Questions Vol1 2021 Financial Accounting Question 43

Practice objective / multiple choice question 43 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 43 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

State the accounting concept that requires expenses to be recognised in the same period as the revenues they help generate, and illustrate the concept with an example involving prepaid insurance.

Answer Options

Correct Answer A. Matching concept; e.g., prepaid insurance of ₦12,000 is expensed ₦1,000 each month.
B. Revenue recognition concept; e.g., prepaid insurance of ₦12,000 is expensed ₦1,200 each month.
C. Accrual concept; e.g., prepaid insurance of ₦12,000 is expensed ₦1,000 each month.
D. Matching concept; e.g., prepaid insurance of ₦12,000 is expensed ₦2,000 each month.
Correct Answer
A
Correct Option:
Matching concept; e.g., prepaid insurance of ₦12,000 is expensed ₦1,000 each month.

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 43. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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