Worksheetsaccounting concepts and convention
Total questions: 10
Worksheet time: 3mins
Which accounting concept suggests that financial statements should be prepared assuming that the entity will continue its operations indefinitely?
Entity concept
Going Concern Concept
Accrual Concept
Money measurement concept
Which accounting convention suggests that accountants should record transactions and events at their original cost?
Conservatism
Consistency
Historical cost
Materiality
Which accounting convention suggests that once a particular accounting method is chosen, it should be consistently applied over time?
Conservatism
Consistency
Accrual
Materiality
If a company estimates that a portion of its accounts receivable will not be collectible, which accounting concept requires recording this estimated loss immediately?
Conservatism conventions
Accrual Concept
Matching principle
Materiality Concept
According to the matching principle, expenses should be recognized:
When cash is recieved
When cash is paid
When they are incurred to generate revenue
When they are paid to supplier
Which convention allows businesses to use estimates and assumptions when preparing financial statements?
Consistency conventions
Entity conventions
Conservatism conventions
Full Disclosure conventions
The ___________ concept assumes that a business will continue its operations indefinitely.
Going Concern Concept
Accrual Concept
Consistency Concept
The ___________ convention requires accountants to follow the same accounting methods and principles from one period to another to ensure comparability.
Consistency
Full disclosure
Going Concern
The ___________ concept suggests that financial statements should include all relevant information necessary for users to make informed decisions.
Full Disclosure
Conservatism
Historical cost
Which convention requires accountants to follow the same accounting methods and principles from one period to another to ensure comparability?
Consistency Conventions
Conservatism conventions
Full Disclosure conventions
Materiality conventions
