Accounting Concepts - Edexcel

Which accounting concept is being applied when a business uses the same method of depreciation each year?

• business entity

• consistency

• money measurement

• prudence

A trader always uses the diminishing balance method of depreciation for machinery.

Which accounting concept is being applied?

• accrual

• consistency

• dual aspect

• going concern

A sole trader included the purchase of a motor vehicle for private use as a business asset.

Which accounting concept has not been complied with?

• accruals

• business entity

• going concern

• materiality

A business decides to include the cost of small items of office equipment as expenses in the profit and loss account.

Which accounting concept is being applied?

• accruals

• business entity

• materiality

• prudence

Which one of the following is an accounting concept?

• Comparability

• Materiality

• Objectivity

• Understandability

Which is not an accounting concept?

• Business entity

• Confidentiality

• Consistency

• Materiality

The skills and knowledge of a workforce is not shown as an asset in the financial statements.

Which accounting concept is being applied?

• Business entity

• Consistency

• Materiality

• Money measurement

A trader always uses the straight line method of depreciation for all motor vehicles.

Which accounting concept is he applying?

• accrual

• consistency

• dual aspect

• going concern

At the end of the financial year a business owed one month’s rent. This was added to rent paid during the year to calculate the total rent for the year. Which accounting concept is being followed?

• accruals

• business entity

• money measurement

• prudence

Which accounting concept is described in the statement ‘the business will continue inexistence for the foreseeable future’?

• business entity

• consistency

• going concern

• prudence