Accounting Principles

The ______________ principle means that the business is treated as being completely separate from the owner of the business.

• business entity

• consistency

• duality

• going concern

The __________ principle means that accounting methods must be used consistently from one accounting period to the next.

• historic cost

• matching

• going concern

• consistency

The __________ means that the accounting records are maintained on

the basis that the business will continue to operate for an indefinite period
of time.

• historic cost

• going concern

• duality

• consistency

The _________ principle means that the revenue of the accounting period is matched against the costs of the same period.

• materiality

• matching

• historic cost

• going concern

The ________ principle means that all assets and expenses are initially recorded at their actual cost.

• historic cost

• going concern

• duality

• consistency

The __________ principle means that profits and assets should not be overstated and losses and liabilities should not be understated.

• realisation

• prudence

• money measurement

• materiality

The ________ principle means that revenue is only regarded as being earned when the legal title to goods passes from the seller to the buyer.

• historic cost

• money measurement

• prudence

• realisation

Inventory must always be valued at the
lower of cost and net realisable value, is an application of __________ principle.

• realisation

• prudence

• money measurement

• materiality

__________

is money spent on purchasing, improving or extending non- current assets.

• Capital expenditure

• Revenue expenditure

Revenue from the sale of goods is a ___________ .

• revenue receipt

• capital receipt