G.A.A.P. Principles

The __________concept states that businesses should be treated as if they will continue to stay in business.

• going concern
• business entity

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

• Business entity concept
• Going concern concept

Switching accounting principles every year would violate the

• money measurement principle

• consistency principle

actual cost of an item at purchase needs to be stated, not its current value

• cash principle

• average principle

• cost principle

• replacement principle

accountants must only record information which can be verified with proof such as receipts

• disclosure / truth principle

• GAAP

• reliability / objective evidence principle

• cost receipt principle

all information which is relevant to financial statement must be included in the financial statement

• cost principle

• disclosure principle

• reliability principle

• GAAP

duty to uphold rules and regulations based on moral values

• irs laws

• GAAP

• going concern

• ethical responsibility

Which of the following correctly defines the acronym GAAP?

• Generally Accrued Accounting Principles

• Generally Accepted Accounting Process

• Generally Advised Accounting Principles

• Generally Accepted Accounting Principles

An expense being reported at the same time as its corresponding revenue is an example of which of the following principles?

• Cost principle

• Matching principle

• Disclosure principle

• Revenue recognition principle

Sales revenue earned in December are recorded on the December General Journal as revenue is an example of which of the following principles?

• Cost principle

• Matching principle

• Disclosure principle

• Revenue recognition principle