Fundamental Concepts And Principles In Accounting

14 Questions  I  By Geopoet
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Accounting Quizzes & Trivia
1. Define accounting and know its purpose. 2. Differentiate the types of business organizations. 3. Distinguish the different types of business operations. 4. Know and appreciate the basic accounting principles used in the practice of accounting.

  
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  • 1. 
    All business transactions that will be entered in the accounting records must be fully supported by verifiable evidence.
    • A. 

      Historical Cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 2. 
    Approaches used in reporting must be consistently employed from period to period.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 3. 
    Financial reporting is concerned with significant information enough to affect evaluation and decisions.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 4. 
    All properties and services acquired by the business must be recorded at its original cost.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 5. 
    Revenue is recognized when actually earned.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 6. 
    Expense is recognized when actually incurred or used.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 7. 
    All material facts that will significantly affect the financial statements must be indicated.
    • A. 

      Historical cost

    • B. 

      Objectivity

    • C. 

      Conservatism (Prudence)

    • D. 

      Accrual Principle

    • E. 

      Full Disclosure

    • F. 

      Consistency

    • G. 

      Materiality


  • 8. 
    Assumes that business has the ability to operate indefinitely.
    • A. 

      Entity

    • B. 

      Periodicity

    • C. 

      Going Concern


  • 9. 
    The business organization is separate and distinct from that of its owners.
    • A. 

      Entity

    • B. 

      Periodicity

    • C. 

      Going Concern


  • 10. 
    Methods used by a business to keep records of its financial activities and to summarize these activities in periodic accounting reports.
    • A. 

      Generally Accepted Accounting Principles

    • B. 

      Accounting System

    • C. 

      Transaction

    • D. 

      Accounting


  • 11. 
    Standards, concepts, and measuring techniques used in the preparation and presentation of financial statements.
    • A. 

      Generally Accepted Accounting Principles

    • B. 

      Accounting System

    • C. 

      Transaction

    • D. 

      Accounting


  • 12. 
    Completed action which can be expressed in monetary terms.
    • A. 

      Generally Accepted Accounting Principles

    • B. 

      Accounting System

    • C. 

      Transaction

    • D. 

      Accounting


  • 13. 
    Systematic process of measuring and reporting relevant financial information about the activities of an economic organization or unit.
    • A. 

      Generally Accepted Accounting Principles

    • B. 

      Accounting System

    • C. 

      Transaction

    • D. 

      Accounting


  • 14. 
    Financial accounting provides information about the activities on an economic enterprise for specified time periods.
    • A. 

      Entity

    • B. 

      Periodicity

    • C. 

      Going Concern


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