Podcast
Questions and Answers
Which concept states that financial transactions should be recorded when they occur, regardless of whether a cash transfer has been made?
Which concept states that financial transactions should be recorded when they occur, regardless of whether a cash transfer has been made?
- Accrual concept (correct)
- Going concern concept
- Matching principle
- Business entity concept
What concept assumes that a business entity will continue its operations at an indefinite period of time?
What concept assumes that a business entity will continue its operations at an indefinite period of time?
- Time period assumption
- Materiality concept
- Going concern concept (correct)
- Revenue recognition principle
Which principle requires that revenues and expenses must be matched in the same period?
Which principle requires that revenues and expenses must be matched in the same period?
- Consistency principle
- Matching principle (correct)
- Full disclosure principle
- Comparability concept
What assumption states that only events and transactions which can be measured and expressed in monetary terms are recorded in the books of accounts?
What assumption states that only events and transactions which can be measured and expressed in monetary terms are recorded in the books of accounts?
Which principle requires that all material items must be properly reported in the financial statements?
Which principle requires that all material items must be properly reported in the financial statements?
What concept states that assets and liabilities of a business should be presented in accounting records at their historical cost?
What concept states that assets and liabilities of a business should be presented in accounting records at their historical cost?
Which principle requires disclosing all the relevant and appropriate financial and non-financial information in the financial statements?
Which principle requires disclosing all the relevant and appropriate financial and non-financial information in the financial statements?
What principle states that a business should use the same accounting policies and methods for recording similar events or transactions from one financial period to another?
What principle states that a business should use the same accounting policies and methods for recording similar events or transactions from one financial period to another?
What concept ensures that financial reports users must be able to compare these reports with previous years and with reports of other entities?
What concept ensures that financial reports users must be able to compare these reports with previous years and with reports of other entities?
What is the accounting process of organizing data in a chronological order for the purpose of preparation of financial statements?
What is the accounting process of organizing data in a chronological order for the purpose of preparation of financial statements?
Who primarily uses management accounting for decision making?
Who primarily uses management accounting for decision making?
Which branch of accounting involves the categorizing, tracing, and collecting of manufacturing costs?
Which branch of accounting involves the categorizing, tracing, and collecting of manufacturing costs?
For what purpose does the government use financial accounting?
For what purpose does the government use financial accounting?
Which form of business organization has a separate legal personality from its owners?
Which form of business organization has a separate legal personality from its owners?
What type of business involves buying, processing, and selling products?
What type of business involves buying, processing, and selling products?
Which external user is interested in the continuous availability of products and related accessories?
Which external user is interested in the continuous availability of products and related accessories?
What is the main function of accounting?
What is the main function of accounting?
Which branch of accounting involves the review, examination, verification, evaluation or inspection of financial records?
Which branch of accounting involves the review, examination, verification, evaluation or inspection of financial records?
What does management accounting primarily focus on?
What does management accounting primarily focus on?
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