A company purchases a machinery on hire purchase over four years but does not own the machinery
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A company purchases a machinery on hire purchase over four years but does not own the machinery until the final payment has been made. At the end of year 1, the company shows the machinery in its Balance Sheet as a fixed asset and also records the liability for the amount still owed. Which accounting concept is being applied ?
A. Going concern
B. Substance over form
C. Prudence
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Related Book For
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee
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