Lesson 6 - FABM 1

Multiple Choice

In accounting, a business or an organization and its owners are treated as two separately parties.

• Periodicity Concept

• Stable Monetary Unit Concept

• Entity Concept

• Accrual Basis

Multiple Choice

This concept states that an organization can report its financial results within certain designated periods of time.

• Periodicity Concept

• Stable Monetary Unit Concept

• Entity Concept

• Accrual Basis

Multiple Choice

This assumption argues that a currency is stable in the long run and does not undergo a loss in its purchasing power

• Periodicity Concept

• Stable Monetary Unit Concept

• Entity Concept

• Accrual Basis

Multiple Choice

This is a method of recording accounting transactions for revenue when earned and expenses when incurred.

• Periodicity Concept

• Stable Monetary Unit Concept

• Entity Concept

• Accrual Basis

Open Ended

What is the Generally Accepted Accounting Principles?

Open Ended

Why should an accounting information be RELEVANT?

Open Ended

Why should an accounting information be OBJECTIVE?

Open Ended

Why should an accounting information be FEASIBLE?

Open Ended

What is the OBJECTIVITY PRINCIPLE?

Open Ended

What is the HISTORICAL COST PRINCIPLE?

Open Ended

What is the REVENUE RECOGNITION PRINCIPLE?

Open Ended

What is the EXPENSE RECOGNITION PRINCIPLE?

Open Ended

What is ADEQUATE DISCLOSURE PRINCIPLE?

Open Ended

What is MATERIALITY PRINCIPLE?

Open Ended

What is CONSISTENCY PRINCIPLE?

Open Ended

What are the ENHANCING QUALITATIVE CHARACTERISTICS of accounting information?

Open Ended

What is the underlying principle of accounting?