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On 1 January 2019, Build Co, a construction company, entered into a 3-year bridge construction...

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Accounting

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On 1 January 2019, Build Co, a construction company, entered into a 3-year bridge construction project in which it expected tuture losses of BHD20,000. Instead of allocating the losses over the construction period, Build Co recognized the expected losses immediately. In essence, the transaction was recorded to reflect the: Select one: a. Uniformity of financial information. b. Prudence concept. c. Business entity concept. d. Understandability of financial information. Naeema Co, a manufacturing firm, purchases raw material at a cost of BHD3,400 plus VAT at the standard rate of 5%. From the raw materials, Naeema Co makes finished products which it sells to retail outlet, KDS Co, for BHD 3,900 plus VAT at 5%. KDS Co sells the products to customers at a total price of BHD 4,300 plus VAT at 5%. The accounting journal entries for VAT from the manufacture's: i.e. Naeema Co's Standpoint) will include of Select one: O A. Cr purchases BHD 3,400 O B. Cr purchases BHD 3,570 O C. Dr purchases BHD 3,400 D. Dr purchases BHD 3,570

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