Intro to Accounting

How many basic accounting concepts are there?

• 4

• 5

• 10

• 15

Which of the following is NOT an accounting concept?

• Monetary assumption

• Efficiency

• Accrual concept

• Objectivity

If an owner uses the business' cash to buy his personal car's insurance, it should not be treated as the business expense. This is applying which accounting concept?

• Accounting Entity

• Historical Cost

• Matching Principle

• Prudence

The 'Going Concern' concept states that we have to assume that a business would be operating for how long?

• One accounting period

• One year

• One decade

• Indefinitely

True or False

A business can record the efficiency of their employees in their books of accounts

• True

• False

"Revenue is recognized when it is earned and expenses when incurred, regardless if payment has been received or made" Which accounting concept is this referring to?

• Matching Principle

• Accrual Concept

• Historical Cost

• Consistency

Which of the following is the correct expanded accounting equation?

• Assets = Liabilities + Capital + Drawings - Revenue + Expenses

• Assets = Liabilities - Capital - Drawings + Revenue + Expenses

• Assets = Liabilities + Capital - Drawings + Revenue - Expenses

• Assets = Liabilities + Capital - Drawings - Revenue - Expenses

Which of the following is the correct definition of a business asset?

• Resources owed by a business to carry out business activities

• Resources owned by a business to carry out business activities

• Resources that is borrowed by a business

• None of the above

How many types of Assets are there?

Which category would you categorize a bank loan?

• Current Assets

• Non-Current Assets

• Non-Current Liabilities

• Current Liabilities