Podcast
Questions and Answers
Which condition must accounting principles satisfy?
Which condition must accounting principles satisfy?
- They must be complex and hard to understand
- They can be followed inconsistently
- They should not reflect future predictions
- They should be based on real assumptions (correct)
Which of the following is a key point of the Business Entity Concept?
Which of the following is a key point of the Business Entity Concept?
- The business organization and the owner are not separate legal entities
- Losses are considered liabilities to the business (correct)
- Transactions are recorded from the owner's perspective
- Profits are considered assets to the business
What does the Money Measurement Concept state?
What does the Money Measurement Concept state?
- Only tangible assets can be recorded in the books of accounts
- All transactions should be recorded in the accounting books
- Transactions recorded must be measurable in terms of money (correct)
- Transactions must be measured in terms of non-monetary units
What do accounting conventions include?
What do accounting conventions include?
Which type of professional standards do accounting concepts represent?
Which type of professional standards do accounting concepts represent?
What is the main purpose of accounting information?
What is the main purpose of accounting information?
Why is it important for accounting information to be reliable and comparable?
Why is it important for accounting information to be reliable and comparable?
Why are consistent accounting policies, principles, and practices important in maintaining financial records?
Why are consistent accounting policies, principles, and practices important in maintaining financial records?
What is the role of Generally Accepted Accounting Principles (GAAP) in accounting?
What is the role of Generally Accepted Accounting Principles (GAAP) in accounting?
What do generally accepted accounting principles (GAAP) refer to?
What do generally accepted accounting principles (GAAP) refer to?
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