WorksheetsAccounting Concepts and Principles
Total questions: 10
Worksheet time: 3mins
The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the ______________.
economic entity assumption
monetary unit assumption
cost principle
both b and c
Financial statements combining the operations of Juan Cruz and J. Cruz Plumbing Services would violate the ______________.
economic entity assumption
monetary unit assumption
ownership assumption
cost principle
''GAAP'' refers to ________________.
Guidelines for Accountants, Accounting Procedures
General Association of Accounting Practitioners
General Accounting and Auditing Principles
Generally Accepted Accounting Principles
Recording the purchase price of a chalkboard eraser (with an estimated useful life of ten years) as an expense of the current period is justified by the _________.
going concern assumption
comparability principle
materiality concept
matching principle
The assumed continuation of a business entity in the absence of evidence to the contrary is an example of the accounting concept of ______________.
going concern
comparability
consistency
accrual
Conservatism is best described as selecting an accounting alternative that ______________.
is least likely to mislead users of financial information
has at least favorable impact on owner's equity
overstates, as opposed to understates, liabilities
understates assets and/or net income
The financial statements prepared for the business are separate and distinction from the owners. This is an accordance with the ______________.
economic entity assumption
going concern principle
full disclosure principle
matching principle
The accrual basis of accounting is based primarily on ______________.
conservatism and revenue
revenue realization and matching
conservatism and matching
consistency and matching
Recording the purchase price of a pencil sharpener (with an estimated useful life of ten years) as an expense of the current period is justified by the ______________.
going concern assumption
comparability principle
materiality concept
matching principle
Accountants prepare financial statements at arbitrary points in time during a company's lifetime in accordance with the accounting concept of ______________.
accounting periods
comparability
materiality
matching
