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WorksheetsAccounting Concept and Conventions
Total questions: 10
Worksheet time: 7mins
Which of the following does not belongs to relevance characteristic in accounting?
Predictive value
Confirmatory value
Neutrality
Materiality
Which of the following element represents neutrality?
Fairness and freedom from bias
No errors or omissions in the description of phenomenon
Include all necessary information for user's understanding
Provides feedback on previous evaluation
Which of the following is NOT an enhancing qualitative characteristic of accoounting?
Comparability
Verifiability
Understandability
Materiality
The comparability is NOT ACHIEVED when
things are accounted for in the same way as others
when accounting rules require unlike things be accounted for in the same way
enables comparisons within the entity and across entities
a reporting entity is more useful if it can be compared with similar information about other entities and with similarinformation about the same entity for another period or another date
Verifiability can be done in direct and indirect verification.
TRUE
FALSE
Classifying, characterising and presenting information clearly and conciselymakes it understandable. This statement refers to which quallitative elements in accounting?
Consistency
Timeliness
Understandability
Comparability
Company keeps its activity separate from its owners and other businesses.
To which accounting concepts and conventions this statement refers?
Economic Entity
Going Concern
Historical Cost
Money Measurement
Going concern emphasise on the business sustainability by assuming the intention of conducting the business will lasts forever with no intention to enter liquidation or cease trading
TRUE
FALSE
Which of the following description does not belongs to Money Measurement concept?
A business should only record an accounting transaction if it can be expressed in terms of money
Appropriate basis for accounting measurement and analysis is used
The use of monetary terms, assuming it is stable with money is the common denominator
Recorded activities of a business entity should be kept separate from the recorded activities of its owner(s)
This concept is clarified by the cost principle, which states that the business should only record an asset, liability, or equity investment at its original acquisition cost.
This statement refers to
Verifiability
Materiality
Historical Cost
Going Concern
