Which is not a feature of separate entity concept?

• Business and owner are treated as separate entities

• Personal affairs of the owner should not be considered

• Business should not be dissolved in the near future

• This concept is followed in all types of business organizations

Going concern may be defined best as:

• This concept provides the basis for the formation of the accounting equation.

• This concept refuses allocation of cost on different accounting periods.

• This concept discusses the issue of the realization of profit.

• This concept assumes that the business will operate for a long period of time and will not be dissolved in near future.

What is the full form of GAAP?

• Generally Accepted Accounting Practices

• Generally Accepted Accounting Principles

• Generally Accredited Accounting Principles

• Globally Accepted Accounting Principles

Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?

• Business entity concept

• Realization concept

• Accounting period concept

• Going concern concept

The business or economic entity concept is applicable to:

• sole proprietorship form of business

• partnership form of business

• corporate form of business

• all of the above

Which of the following states that a transaction is not recorded in the books of accounts unless it is financial in nature?

• Revenue realization concept

• Business entity concept

• Cost concept

• Money measurement concept

Which one of the following states that the life of a business can be divided into equal time periods?

• Going concern concept

• Money measurement concept

• Accounting period concept

• Business entity concept

Revenue is realized and recorded at the time of

• providing or delivering goods or services to customers

• receiving payment from customers

• receipt of order for purchase

• receipt of goods or services

JK Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:

• Matching concept

• Cost concept

• Realization concept

• Money measurement concept

According to which accounting principle, the owners of the business are considered as creditors?

• Money measurement concept

• Business entity concept

• Realization concept

• Matching concept