A basic unifying concept in accounting implies that?

Assessment: JAMB UTME - Principles of Accounts - 1999 Subject: Financial Accounting

Question 1 Report

A basic unifying concept in accounting implies that?
Answer Details
A basic unifying concept in accounting is the equation Assets = Liabilities + Equity, which means that a company's assets should always equal the sum of its liabilities and equity. This concept is also known as the accounting equation. This equation is the foundation for all accounting transactions and financial statements, including the balance sheet, income statement, and statement of cash flows. Therefore, the correct option is that the basic unifying concept in accounting implies that where creditors' account is zero, the assets are equal to the owners' equity.
Read lesson note on Accounting Concepts (WAEC)
Read lesson note on The Accounting Equation And Double Entry Principle (WAEC)
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