WorksheetsAccounting Concepts and Principles
Total questions: 10
Worksheet time: 5mins
According to accrual concept of accounting, financial or business transaction is recorded:
when cash is received or paid
when transaction occurs
when profit is computed
when balance sheet is prepared
Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?
materiality concept of accounting
time period concept of accounting
matching principle of accounting
business or economic entity concept of accounting
Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money?
Matching principle
Revenue recognition principle
Monetary unit assumption
Time period assumption
The auditor noticed that the financial statements of ABM Company were missing some footnotes important for users for decision making. This action of the management is a violation of:
materiality concept
going concern concept
economic entity concept
full disclosure concept
A fixed asset costing Php150,000 is depreciated over its estimated useful life of 15 years. This action is related to:
matching principle
monetary unit assumption
full disclosure concept
None of the above
The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:
materiality concept
conservatism concept
full disclosure concept
cost principle or historical cost concept
Which of the following is taken into account While determining the materiality of an amount?
Size of the amount as well as organization
Cumulative effect of all immaterial amounts
Nature of the amount in question
All of the above
Which accounting principle/concept allows accountants to ignore other accounting principle/concept if the amount in question is immaterial?
business entity concept
conservatism concept
materiality concept
full disclosure concept
The revenue is not recognized until it is earned and realized or at least realizable. To which accounting principle/concept this statement belongs?
Separate entity concept
Revenue recognition principle
Going concern concept
Conservatism concept
Which accounting principle/concepts states that accounting information and financial reporting should be independent and supported with unbiased evidence?
Conservatism Principle
Cost Principle
Objectivity Principle
Going Concern
