Accounting Concepts and Principles Quiz

Which principle states that expenses should be recorded in the same period as the revenues to which they relate?

• Separating principle

• Matching principle

• Accrual principle

• Mismatching principle

This concept states that the financial report of a business can be divided into specific accounting time periods such as monthly, quarterly or annually.

• Accrual

• Consistency

• Accounting Period

• Money Measurement

What is the principle that requires financial statements to reflect the assumption that the business will continue operating?

• Going concern concept

• Consistency concept

• Matching concept

• Accrual concept

Which principle states that assets should be recorded at their original cost?

• Historical cost principle

• Market cost principle

• Future cost principle

• Adjusted cost principle

What is the principle that requires financial statements to include all relevant information that may impact users' decisions?

• Selective disclosure principle

• Limited disclosure principle

• Full disclosure principle

• Partial disclosure principle

What is the principle that requires businesses to report financial information separately from the personal financial information of its owners?

• The principle of combined entity

• The principle of individual entity

• The principle of separate entity

• The principle of shared entity

This concept is require accountants to exercise a degree of caution in the adoption of accounting policies to avoid overstating assets and revenues, and to avoid understating liabilities and expenses.

• Conservatism principle

• Business Entity

• Objectivity

• Materiality

Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial?

• Conservatism

• Materiality

• Objectivity

• Matching

Which principle states that businesses should use the same accounting methods and procedures from period to period?

• The principle of unpredictability

• The principle of going concern

• The principle of consistency

• The principle of inconsistency

Which principle/guideline is associated with the assumption that the company will continue on long enough to carry out its objectives and commitments?

• Going Concern

• Business Entity

• Consistency

• Accounting Period