Answer to Question #232695 in Economics for nat

Question

1.4 The account of a debtor who is experiencing financial difficulty is written off. This is an example

of the application of the ___________. (1)

A matching principle

B principle of consistency

C prudence principle

D principle of materiality

1.5 Which one of the following errors will be revealed by a trial balance? (1)

A. A balance from the general ledger was not entered in the trial balance.

B. A balance of a debtors account in the Debtors Ledger was incorrectly calculated.

C. A purchase of stationery was debited to the equipment account in error.

D. Rent received from a tenant was posted to the credit side of interest income account in the

ledger.

Answer 1

1.4 The account of a debtor who is experiencing financial difficulty is written off. This is an example of the application of the matching principle.

So, the correct answer is A.

1.5 A purchase of stationery was debited to the equipment account in error will be revealed by a trial balance.

So, the correct answer is C.