Accounting SS1 3rd Term Revision

The business is treated separately from its owner according to the:

• Going concern concept

• Money measurement concept

• Business entity concept

• Accrual concept

Which concept assumes that the business will continue to operate in the foreseeable future?

• Consistency

• Going concern

• Realization

• Prudence

The principle that states only measurable transactions should be recorded is:

• Dual aspect

• Accrual

• Money measurement

• Matching

Which concept requires that income is recorded when earned, not when received?

• Business entity

• Accrual

• Realization

• Conservatism

What concept ensures that every transaction has a dual effect in the books?

• Dual aspect

• Consistency

• Matching

• Realization

Which convention advises caution in reporting income and expenses?

• Consistency

• Prudence

• Matching

• Accrual

The same accounting method must be used each year under the:

• Going concern

• Objectivity

• Consistency

• Realization

All significant information must be disclosed according to:

• Disclosure

• Matching

• Dual aspect

• Accrual

Trivial items may be ignored according to the:

• Materiality convention

• Consistency convention

• Realization convention

• Objectivity convention

Transactions should be supported by verifiable evidence under:

• Materiality

• Objectivity

• Prudence

• Accrual