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G.A.A.P. Principles

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.
The __________concept states that businesses should be treated as if they will continue to stay in business.
a)
going concern
b)
business entity
2.
The accounting principles that states companies and owners should be account for separately..
a)
Business entity concept
b)
Going concern concept
3.

Switching accounting principles every year would violate the

a)

money measurement principle

b)

consistency principle

4.

actual cost of an item at purchase needs to be stated, not its current value

a)

cash principle

b)

average principle

c)

cost principle

d)

replacement principle

5.

accountants must only record information which can be verified with proof such as receipts

a)

disclosure / truth principle

b)

GAAP

c)

reliability / objective evidence principle

d)

cost receipt principle

6.

all information which is relevant to financial statement must be included in the financial statement

a)

cost principle

b)

disclosure principle

c)

reliability principle

d)

GAAP

7.

duty to uphold rules and regulations based on moral values

a)

irs laws

b)

GAAP

c)

going concern

d)

ethical responsibility

8.

Which of the following correctly defines the acronym GAAP?

a)

Generally Accrued Accounting Principles

b)

Generally Accepted Accounting Process

c)

Generally Advised Accounting Principles

d)

Generally Accepted Accounting Principles

9.

An expense being reported at the same time as its corresponding revenue is an example of which of the following principles?

a)

Cost principle

b)

Matching principle

c)

Disclosure principle

d)

Revenue recognition principle

10.

Sales revenue earned in December are recorded on the December General Journal as revenue is an example of which of the following principles?

a)

Cost principle

b)

Matching principle

c)

Disclosure principle

d)

Revenue recognition principle