Question

(a) Reliable Limited sells goods on credit basis. At the end of the year, it has a
total outstanding of Rs. 120 million from its customers. The past experience
shows that about 5% of the customers invariably default. What are your views on
this? What is the accounting principle involved and briefly explain the same?​

Answer 1

Answer:

you are just home waste waste means waste what the hell you are a

Answer 2

Answer:

Accrual Concept

Explanation:

Because, this requires recording revenues when they are earned and not when they are received in cash and recording expenses when they are incurred and not when they are paid.