WorksheetsAccounting Concepts Quiz
Total questions: 20
Worksheet time: 10mins
Which concept assumes that a business will continue to operate indefinitely?
Consistency Concept
Accrual Concept
Going Concern Concept
Matching Concept
According to which concept are revenues recognized when they are earned, regardless of when the cash is received?
Prudence Concept
Accrual Concept
Realization Concept
Cost Concept
Which concept states that expenses should be matched with the revenues of the same period?
Matching Concept
Consistency Concept
Entity Concept
Prudence Concept
The principle that states 'Anticipate no profits, but provide for all possible losses' is related to which concept?
Realization Concept
Prudence Concept
Accrual Concept
Cost Concept
Which concept implies that a business is separate from its owner?
Entity Concept
Materiality Concept
Periodicity Concept
Consistency Concept
The cost of an asset is recorded at its acquisition price and not adjusted for market value changes. This follows which concept?
Cost Concept
Realization Concept
Matching Concept
Dual Aspect Concept
The concept that suggests transactions should be recorded when they are measurable in monetary terms is called:
Entity Concept
Cost Concept
Money Measurement Concept
Accrual Concept
According to which concept should financial statements be prepared for a specific period of time?
Periodicity Concept
Matching Concept
Entity Concept
Prudence Concept
The consistency concept emphasizes that:
Expenses should match revenues
Similar transactions should be recorded consistently over time
Business will continue indefinitely
All assets should be recorded at cost
Which concept involves recognizing income when it is earned and not when cash is received?
Accrual Concept
Cash Basis Concept
Prudence Concept
Cost Concept
The convention that suggests material information should be disclosed in financial statements is:
Convention of Consistency
Convention of Disclosure
Convention of Materiality
Convention of Prudence
Which convention requires that accounting policies should remain consistent year after year?
Convention of Disclosure
Convention of Consistency
Convention of Conservatism
Convention of Materiality
The convention of conservatism suggests that:
Profits should be anticipated
Losses should be recognized immediately
Revenues should be recorded when earned
Financial statements should be transparent
According to the convention of materiality, which of the following is considered material?
A minor calculation error
An insignificant expense
A transaction that affects decision-making
A routine expense
Which convention emphasizes the need to fully disclose all relevant information?
Convention of Materiality
Convention of Full Disclosure
Convention of Consistency
Convention of Conservatism
In the single entry system, which of the following is generally recorded?
Only income
Only expenses
Only cash transactions
All financial transactions
In a double-entry system, each transaction is recorded:
Once
Twice
In a single account
Only in the balance sheet
Which of the following is a personal account?
Cash Account
Machinery Account
Bank Account
Capital Account
Which account is credited when goods are sold on credit?
Sales Account
Purchase Account
Cash Account
Debtor's Account
What type of account is a 'Rent Expense Account'?
Real Account
Personal Account
Nominal Account
Capital Account
