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WorksheetsACCOUNTING CONCEPTS & STANDARDS
Total questions: 30
Worksheet time: 30mins
Which is not a feature of Accounting Principles?
Man Made
Generally Accepted
Rigid
According to Going Concern Concept, a business is viewed as having
a limited life
a long life
an indefinite life
None of these
Financial Statements of a firm are prepared every year on 31st March, according to which concept?
Money Measurement
Revenue Recognition
Materiality
Accounting Period
Advance received from a customer is not recorded as income or sales according to the accounting concept of
Revenue Recognition
Conservatism
Money Measurement
Dual Aspect
The accounting standards for India are issued by (a)
If one aspect of a transaction is not recorded, which accounting concept is violated?
Cost
Business Entity
Matching
Dual Aspect.
According to which concept, closing Stock is valued at lower of cost or market value?
Cost
Conservatism
Revenue Recognition
Money Measurement
The efficiency of management team is not recorded in financial statement according to ___________ concept
Money Measurement
Conservatism
Materiality
Going Concern
An amount withdrawn from the business to meet any personal expense is treated as drawings. The concept followed for this treatment is:
Going Concern
Business Entity
Objectivity
Prudence
The accounting period of a business is separated into activitiess that help the business keep its accounting records in an orderly fashion.
Accounting Period Cycle
Source Document
Fiscal Year
None of the Above
Concept: a business's records should never be mixed with an owner's personal records and reports
adequate disclosure
business entity
objective evidence
going concern
Concept: When a source document is prepared for each transaction
going concern
materiality
realization of revenue
objective evidence
Concept: Financial statements are prepared with the expectation that business will remain in operation indefinately
going concern
materiality
accounting period cycle
matching revenue with expenses
Concept: Revenue is recorded at the same time goods or services are sold.
realization of revenue
the revenue principle
going concern
historical cost
Concept: The actual amount paid for merchandise or other items purchased is recorded, even though the value of the asset may be different
unit of measurement
historical cost
matching expenses with revenue
consistent reporting
The standards and rules that accountants follow while recording and keeping financials.
Ethics
Financial Statements
GAAP
SEC
Concept of consistency means :
all the firm in the same industry should be identical accounting principles and procedures
all principle and procedures of accounting are utilised
accounting principles and methods should remain consistent from one year to another
all of the above
The basic accounting equation is Assets = Liabilities + (a) .
Under the accrual basis of accounting, revenues are reported in the accounting period when the....
Service Or Goods Have Been Delivered
Cash Is Received
Which principle/guideline requires a company's balance sheet to report its land at the amount the company paid to acquire the land, even if the land could be sold today at a significantly higher amount?
Historical Cost
Economic Entity
Full disclosure
Time Period
Which principle/guideline directs a company to show all the expenses related to its revenues of a specified period even if the expenses were not paid in that period?
Cost Principle
Matching Principle
Full disclosure Principle
Materiality Principle
“Do not anticipate any profit but provide for all losses” the statement justify the (a) concept.
Only cash transactions are recorded in (a) basis of accounting.
Aman and Raman are creating 5% provision for doubtful debts keeping in mind (a) principle of accounting.
Karan started business with cash of Rs 3,50,000 which is borrowed from Dev. On one hand he has an asset of Rs 3,50,000 (cash) while on other hand, he has a liability towards Dev. Thus we can say accounting is done by (a) entry system.
