Accounting Principles

A business record should never be mixed with owners's personal records- Identify the principle

• Dual Concept

• Business Entity

• Objective Evidence

• Materiality Principle

According to which concept, an asset is recorded in the books of account at price paid to acquire it and the cost is the basis for all subsequent accounting of the asset?

• Materiality Principle

• Prudence principle

• Full disclosure Principle

• Cost concept

The value of money is considered to have static value as the transaction are recorded at the value on the transaction date- The following statement is limitation of which principle?

• Business entity

• Dual Aspect

• Money Measurement

• Prudence

Who has issued the Accounting Standards to standardise the accounting practices adopted to prepare financial statements?

Which concept says that accounting should be free from bias?

Which of the following statement is false?

• Accounting principles are man-made

• Accounting principles are not flexible

• Accounting principles are generally accepted

Which principle or concept ensures that the financial statement do not paint a better picture than what it actually is?

Do not anticipate a profit, but provide for all possible losses- Identify the accounting principle

Cost concept is also called as

Which principle refers to relative importance of an item or an event?

• Money Measurement

• Conservatism

• Materiality