Question 1When lower profits and asset valuations areestimated when in doubt, theprincipleis applied.Select one:a. historicb. conservatismc. materialityd. accrual The following information was obtained from the accorFebruary 2020, the end of the financial year:Opening inventoryClosing inventoryPurchasesImport dutiesCarriage on salesThe cost of sales for the year ended 29 February 2020amounted toSelect one:a. R1 030 000b. R1 080 000c. R1 115 000d. R1 065 000

Conservatism principle refers to the set of guidelines of bookkeeping which ensures a high…

Answered: When lower profits and asset valuations…

When lower profits and asset valuations are estimated when in doubt, the principle is applied. Select one: a. historic b. conservatism

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following information was obtained from the accor
February 2020, the end of the financial year:
Opening inventory
Closing inventory
Purchases
Import duties
Carriage on sales
The cost of sales for the year ended 29 February 2020
amounted to
Select one:
a. R1 030 000
b. R1 080 000
c. R1 115 000
d. R1 065 000

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