Accounting Quizziz

What is Prudence/Conservatism?

• That the business will continue in operational existence for the foreseeable future

• Income and assets are not overestimated & that you are cautious

• That revenues are recognized when they are earned not when cash is received & expenses are recognized as they are incurred not when cash is paid.

• That companies should not switch up their policies & try to stay the same.

What are accruals?

• Income and assets are not overestimated & that you are cautious

• That the business will continue in operational existence for the foreseeable future

• That companies should not switch up their policies & try to stay the same

• That revenues are recognized when they are earned not when cash is received & expenses are recognized as they are incurred not when cash is paid

What is consistency concept?

• That the business will continue in operational existence for the foreseeable future

• That companies should not switch up their policies & try to stay the same.

• That revenues are recognized when they are earned not when cash is received & expenses are recognized as they are incurred not when cash is paid.

• Income and assets are not overestimated & that you are cautious

What is the Going Away concept?

• Income and assets are not overestimated & that you are cautious

• That the business will continue in operational existence for the foreseeable future

• That revenues are recognized when they are earned not when cash is received & expenses are recognized as they are incurred not when cash is paid.

• That companies should not switch up their policies & try to stay the same.

Small payments such as postage & stationery & cleaning expenses are grouped together and recorded as “ _____ “

• Revenue Expenses

• Capital Expenses

• Expenses

• Sundry Expenses

A day to day expenses is called “ _____ “

• Revenue Expense

• Capital Expense

• Sundry Expense

• Expense

What are Historic Costs

• Recording something at the price you originally paid for its current market value or condition

• When non monetary transactions aren’t recorded, it’s all numbers.

• The business & it’s owner and two separate identities

What is Money Measurement?

• The business & it’s owner and two separate identities

• When non monetary transactions aren’t recorded, it’s all numbers.

• Recording something at the price you originally paid for its current market value or condition

What are accounting principles?

• Rules adopted by accountants universally while recording accounting transactions

• Forms of assumptions or conditions

• Customs & tradition which guide the accountants while preparing the accounting statements

What is Realization in accounting?