Accounting Concepts

Transactions are recorded in the period in which they occur.

• Business Entity Concept

• Going Concern Assumption

• Accrual Basis

• Periodicity

The enterprise will continue to operate in the foreseeable future.

• Business Entity Concept

• Going Concern Assumption

• Accrual Basis

• Periodicity

The properties of the owner should be separated from the properties of the business.

• Business Entity Concept

• Going Concern Assumption

• Accrual Basis

• Periodicity

The life of the business can be divided into artificial time period.

• Business Entity Concept

• Going Concern Assumption

• Accrual Basis

• Periodicity

Which of the following is a current asset?

• Land

• Building

• Cash

• Machinery

These are assets purchased for long term use and are not likely to be converted quickly into cash.

• Current Assets

• Non-Current Liability

• Fixed Assets

• Curren Liability

These are long-term liability.

• Current Assets

• Non-Current Liability

• Fixed Assets

• Curren Liability

Which of the following is not a current liability?

• Interest Payable

• Salaries Payable

• Loan Payable

• None of the above

Which of the following is the correct accounting equation?

• Capital = Assets + Liabilities

• Capital = Liabilities - Assets

• Assets - Liabilities = Capital

• Assets + Capital = Liabilities