A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
A)Going concern
B)Cost
C)Accrual
D)Money measurement

Question

Quizplus · Accepted Answer

The trader is following the accrual concept, as he is recognizing revenue at the time of sale and not necessarily when cash is received. This is evident from the fact that he has recorded trade receivables for the portion of sales not received in cash.

A Trader Has Made a Sale of Rs