Basic Accounting Principles

Multiple Choice

This is the concept that you should record expenses and liabilities as soon as possible, but to record revenues and assets only when you are sure that they will occur.

• Cost principle

• Consistency principle

• Conservatism principle

• Accrual principle

Multiple Choice

This is the concept that, once you adopt an accounting principle or method, you should continue to use it until a demonstrably better principle or method comes along.

• Cost principle

• Consistency principle

• Conservatism principle

• Accrual principle

Multiple Choice

This is the concept that a business should only record its assets, liabilities, and equity investments at their original purchase costs.

• Cost principle

• Consistency principle

• Conservatism principle

• Accrual principle

Multiple Choice

This is the concept that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.

• Cost principle

• Consistency principle

• Conservatism principle

• Accrual principle

Multiple Choice

This is the concept that the transactions of
a business should be kept separate from those of its owners and other businesses.

• Full disclosure principle

• Economic entity principle

• Going concern principle

• Matching principle

Multiple Choice

This is the concept that you should include in or alongside the financial statements of a business all of the information that may impact a reader's understanding of those statements.

• Full disclosure principle

• Economic entity principle

• Going concern principle

• Matching principle

Multiple Choice

This is the concept that a business will remain in operation for the foreseeable future. This means that you would be justified in deferring the recognition of some expenses,

• Full disclosure principle

• Economic entity principle

• Going concern principle

• Matching principle

Multiple Choice

This is the concept that, when you record revenue, you should record
all related expenses at the same time.

• Full disclosure principle

• Economic entity principle

• Going concern principle

• Matching principle

Multiple Choice

This is the concept that you should record a transaction in the accounting records if not doing so might have altered the decision making process of someone reading the company's financial statements.

• Materiality principle

• Monetary unit principle

• Revenue recognition principle

• Time period principle

Multiple Choice

his is the concept that a business should only record transactions
that can be stated in terms of a unit of currency.

• Materiality principle

• Monetary unit principle

• Revenue recognition principle

• Time period principle

Multiple Choice

his is the concept that a business should report the results of its operations over a standard period of time.

• Materiality principle

• Monetary unit principle

• Revenue recognition principle

• Time period principle