Accounting Concepts Quiz

According to the concept of Business Entity, how is the business treated for accounting purposes?

• As a separate entity from the owner

• As an investment of the owner

• As a personal asset of the owner

• As a liability of the owner

Which concept in accounting assumes that transactions should be recorded in terms of money only?

• Going Concern Concept

• Materiality Concept

• Money Measurement Concept

• Consistency Concept

What does the Matching Concept in accounting state?

• Assets should always be valued at market price

• All transactions should have a corresponding credit entry

• All revenues should be recorded at the end of the accounting period

• Expenses should be matched with revenues during the same period

Under which concept in accounting is the policy of 'playing safe' followed?

• Objectivity Concept

• Conservatism Concept

• Full Disclosure Concept

• Materiality Concept

What is the basis for recording transactions in accounting according to the Dual Aspect Principle?

• Debit and Credit

• Credit and Debit

• Credit and Credit

• Debit and Debit

Which concept in accounting assumes that the business will last for a long time?

• Objectivity Concept

• Consistency Concept

• Going Concern Concept

• Materiality Concept

When is revenue recognized according to the Revenue Recognition Concept?

• At the point of sale

• At the end of the accounting period

• At the end of the financial year

• At the beginning of the accounting period

What does the Full Disclosure Concept in accounting require?

• To disclose all irrelevant information

• To disclose only positive information

• To disclose all relevant material information

• To disclose information only to the government

Under which concept in accounting are expenses incurred in an accounting period matched with revenues?

• Materiality Concept

• Consistency Concept

• Matching Concept

• Objectivity Concept

What is the purpose of Accounting Standards?

• To increase non comparability of financial statements

• To bring uniformity in accounting policies

• To eliminate comparability of financial statements

• To create confusion in financial statements