Accounting Concepts Quiz

Which concept assumes that a business will continue to operate indefinitely?

• Consistency Concept

• Accrual Concept

• Going Concern Concept

• Matching Concept

According to which concept are revenues recognized when they are earned, regardless of when the cash is received?

• Prudence Concept

• Accrual Concept

• Realization Concept

• Cost Concept

Which concept states that expenses should be matched with the revenues of the same period?

• Matching Concept

• Consistency Concept

• Entity Concept

• Prudence Concept

The principle that states 'Anticipate no profits, but provide for all possible losses' is related to which concept?

• Realization Concept

• Prudence Concept

• Accrual Concept

• Cost Concept

Which concept implies that a business is separate from its owner?

• Entity Concept

• Materiality Concept

• Periodicity Concept

• Consistency Concept

The cost of an asset is recorded at its acquisition price and not adjusted for market value changes. This follows which concept?

• Cost Concept

• Realization Concept

• Matching Concept

• Dual Aspect Concept

The concept that suggests transactions should be recorded when they are measurable in monetary terms is called:

• Entity Concept

• Cost Concept

• Money Measurement Concept

• Accrual Concept

According to which concept should financial statements be prepared for a specific period of time?

• Periodicity Concept

• Matching Concept

• Entity Concept

• Prudence Concept

The consistency concept emphasizes that:

• Expenses should match revenues

• Similar transactions should be recorded consistently over time

• Business will continue indefinitely

• All assets should be recorded at cost

Which concept involves recognizing income when it is earned and not when cash is received?

• Accrual Concept

• Cash Basis Concept

• Prudence Concept

• Cost Concept