POA - Accounting Concepts & Conventions

POA - Accounting Concepts & Conventions

OCTOBER 2020

Multiple Choice

There's no difference between Accounting Concepts and Accounting Conventions.

• True

• False

Multiple Choice

It is important to be guided by these concepts and conventions because of the many persons who work for varying organizations.

• True

• False

Multiple Choice

Accounting Concepts and Conventions are not the same as Accounting Principles.

• True

• False

Multiple Choice

The Accrual/Matching Concept states that expenses incurred for the business can be recorded in any period that the accountant chooses.

• True

• False

Multiple Choice

The Prudence Concept is the same as the Conservatism Concept.

• True

• False

Multiple Choice

The Prudence Concept states that profits are to be understated and losses are to be overstated.

• True

• False

Multiple Choice

The Consistency Concept states that accounting treatment of items can be changed year by year.

• True

• False

Multiple Choice

"What belongs to the owner belongs to the owner and what belongs to the business belongs to the business". This is the Separate Entity Concept.

• True

• False

Multiple Choice

The Dual Aspect/Double Entry principle concept states that a transaction must be recorded at least twice.

• True

• False

Multiple Choice

The Money Management Concept states that all information must be recorded in the books of accounts, including the skills of the workers.

• True

• False

Multiple Choice

The Historical Cost Convention is of the view that the assets of a business must be recorded at their true value, which is the current market price, in the balance sheet.

• True

• False