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WorksheetsAccounting Concepts and conventions
Total questions: 11
Worksheet time: 10mins
This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities
Money Measurement Concept
Going Concern Concept
Business Entity Concept
Cost Concept
If all the business transactions are expressed in monetary terms, it will be easy to understand the accounts prepared by the business enterprise.
Business Entity Concept
Revenue Recognition Concept
Money Measurement Concept
Going Concern Concept
This concept states that a business firm will continue to carry on its activities for an indefinite period of time.
Money Measurement Concept
Historical Cost Concept
Going Concern Concept
Dual Aspect Concept
This concept requires asset to be shown at the price it has been acquired, which can be verified from the supporting documents.
Historical Cost Concept
Accounting Period Concept
Revenue Recognition Concept
Matching Concept
It encourages the accountant to post each entry in opposite sides of two affected accounts
Money Measurement Concept
Full disclosure convention
Dual aspect Concept
Realisation concept
It helps in knowing actual expenses and actual income during a particular time period.
Matching Concept
Accrual Concept
Revenue Recognition Concept
Cost Concept
It guides how the expenses should be matched with revenue for determining exact profit or loss for a particular period.
Accrual Concept
Matching Concept
Revenue Recognition Concept
Going Concern Concept
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
The accounting principle that states companies and owners should be account for separately:
Business Entity Concept
Going Concern Concept
Monetary Unit Measurement Concept
Accounting Period Concept
