Y10 Accounting - C10 Accounting Rules

Which accounting principle states that every transaction is recorded twice - once on a debit side, once on the credit side?

• Going Concern Principle

• Duality Principle

• Consistency Principle

• Business Entity Principle

What is the purpose of the Consistency Principle in accounting?

• To record revenue against the same period

• To ensure that accounting method is used consistently from one period to the next

• To make comparison between financial results of different businesses

• To fully understand the financial position of a business

Which principle requires that all assets and expenses are initially recorded in the ledger accounts at their actual cost?

• Historic Cost Principle

• Matching Principle

• Consistency Principle

• Business Entity Principle

What is the purpose of the Money Measurement Principle in accounting?

• To only record information that can be expressed in terms of money

• To record revenue against the same period

• To ensure that profits and assets are not overstated

• To match revenue with expenses

Which principle states that revenue is only earned when the title of the goods passes from the seller to the buyer?

• Materiality Principle

• Money Measurement Principle

• Prudence Principle

• Realisation Principle

What is the purpose of the Prudence Principle in accounting?

• To ensure that accounting method is used consistently from one period to the next

• To ensure that profits and assets are not overstated

• To fully understand the financial position of a business

• To make comparison between financial results of different businesses

Which international accounting standard ensures that financial statements are prepared using the same rules and guidelines internationally?

• Relevance

• Understandability

• Reliability

• Comparability

What factor of financial information quality is measured by its ability to be compared across different businesses and accounting periods?

• Understandability

• Reliability

• Relevance

• Comparability

What is the purpose of the Reliability factor in measuring financial information quality?

• To generate reliable and accurate financial information

• To provide a more accurate financial information for the year

• To ensure that profits and assets are not overstated

• To understand the financial position of a business

Which type of expenditure is money spent on running a business on a day-to-day basis?

• Capital Expenditure

• Revenue Expenditure

• Capital Receipt

• Revenue Receipt