Accounting Principles Quiz

Rules and guidelines that company must follow when reporting financial data is called:

• Accounting principles

• Accounting procedures.

• Accounting assumptions.

• None of the above.

Which of the following principle provides the definite and factual basis for assets valuation?

• Stable Currency principle.

• Objectivity Principle

• Matching Principle.

• Cost Principle

Which of the following principle states that the assets are purchased for the use and not for resale purpose?

• Stable Currency principle.

• Objectivity Principle

• Going-concern principle.

• Cost Principle

Which of the following principles assumes that a business will continue for a long time?

• Historical cost.

• Periodicity

• Objectivity.

• Going concern

The accounting principle that states companies and owners should be account for separately:

• Business entity concept.

• Going concern concept

• Monetary unit assumption.

• Periodicity assumption

According to the personal expenses paid by Mr. A from his own pocket would not be recorded in business books of account:

• Realization principle.

• Separate entity principle

• Matching principle.

• Materiality principle

Which of the following principle deals with the valuation and recording of the assets at cost?

• Entity principle.

• Matching principle

• Cost principle.

• Stable currency principle

Which of the following principle is used for recording an expense?

• Matching principle

• Cost principle

• Realization principle.

• Objectivity principle

Companies not disclosing an imminent bankruptcy would violate the:

• Business entity concept.

• Going concern concept

• Monetary unit assumption.

• Periodicity assumption

The assumption that states that businesses can divide up their activities into artificial time periods:

• Business entity concept.

• Going concern concept

• Monetary unit assumption.

• Periodicity assumption