Business Accounting Quiz

Going concern is one of the accounting assumptions. Which statement is TRUE about going concern?

• A business and its owner are two different entities.

• The business is going to be operated for the foreseeable future.

• The same accounting method will be used continuously from one accounting period to another.

• Business activities can be divided into a certain period of time.

In accounting, the ..................... concept states that expenses should be recorded during the same period in which the revenue incurred.

• Separate entity

• Consistency

• Matching

• Going concern

Which accounting concept define the owner and his business are regarded as two different parties?

• Separate entity concept

• Historical cost concept

• Conservatism concept

• Money measurement concept

“The same accounting method will be used from one accounting period to another accounting period”. Choose accounting concept based on the statement given.

• Going concern

• Consistency

• Materiality

• Accountability

Which statement shows the process of accounting in the correct chronological order?

• Identifying, recording, summarizing, interpreting

• Classifying, recording, summarizing, interpreting

• Identifying, recording, interpreting, summarizing

• Recording, classifying, identifying, interpreting.

Which of the following statements does NOT describe about users of accounting information?

• Management is considered as an external user.

• Government is considered as an external user.

• Investor is considered as an external user.

• Present creditor is considered as an external user.

At the end of each accounting period, DZ Enterprise depreciates the company vehicles at a rate of 20% per annum on cost. Choose the right accounting concept applied by DZ Enterprise.

• Historical cost

• Consistency

• Matching

• Accounting period

Which of the followings is NOT the roles of an accountant?

• Designing and controlling system of records, auditing books and preparing financial statements.

• Give marketing advice and prepare monthly sales report to the management.

• Serve as information providers to many institutions.

• Influence the decision making within a company and settle the problems in financial statements.

A business uses the owner’s private house as an office and pays a monthly rental of RM1,000. Choose the right convention applied. a) Accrual convention b) Going concern convention c) Historical cost convention d) Business entity convention

• Accrual convention

• Going concern convention

• Historical cost convention

• Business entity convention

Which of the following statements is the external user of accounting information?

• Management of the business

• Owner of the business

• Banks or financial institutions

• Internal auditor of a business