Principles of Accountancy
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Questions and Answers

Which principle states that financial statements are to be divided into specific time intervals?

  • Disclosure principle
  • Cost principle
  • Objectivity principle
  • Time period principle (correct)
  • Which principle states that a business enterprise is separate and distinct from its owner or investor?

  • Business entity principle (correct)
  • Time period principle
  • Going concern principle
  • Monetary unit principle
  • Which principle states that financial statements must be presented with supporting evidence?

  • Cost principle
  • Accrual Accounting Principle
  • Disclosure principle
  • Objectivity principle (correct)
  • Which principle states that amounts are stated into a single monetary unit?

    <p>Monetary unit principle</p> Signup and view all the answers

    Which principle states that revenue should be recognized when earned regardless of collection and expenses should be recognized when incurred?

    <p>Accrual Accounting Principle</p> Signup and view all the answers

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