FABM1

Which accounting concept or principle specifically states that acquired assets should be recorded at their actual cost?

• Going Concern

• Materiality

• Historical Cost

The accounting principles that states companies and owners should be account for separately.

• Consistency

• Matching type

• Entity Concept

Recording expenses and revenue in the same period in which they occur_________.

• Accrual Principle

• Matching Type

• Objectivity Principle

Accounting information about the economic activities of an enterprise is provided for specific time periods.

• Adequate Disclosure

• Periodicity

• Historical cost

This refers to the relative importance of an item or event. An item is considered significant knowledge of it would influence prudent to users of the financial statement.

• Materiality

• Accrual Principle

• Matching Type

Which of the categories of information are found on a balance sheet?

• Income, Expense, Profit

• Assets, Liabilities, Owner's Equity

• Assets, Liabilities, Margin

Represent the unsold goods at the end of the accounting period. Its applicable only in merchandising.

• Marketable Securities

• Inventories

• Accrued Income

Non-monetary assets without physical substance hold for the use in the production or supply of goods or administrative purposes e.g trademarks, copyrights.

• Intangibles Assets

• Prepaid Expenses

• Cash Equivalents

Which of the following financial report summarizes the cash activities of the business by classifying the cash inflow and cash out flows into the operating, investing and financing activities.

• Balance Sheet

• Income Statement

• Statement of Cash Flows

Shows the results of operations for a given period.

• Balance Sheet

• Income Statement

• Statement of Changes in Owner's Equity