Accounting Principles And Concepts Quiz Questions And Answers
How good are your basic accounting principles and concepts? Try out these quiz questions and answers and check your financial knowledge. Accounting principles are the common rules and guidelines that companies need to follow while preparing and presenting financial statements. So, how updated are you on these rules? We will test your understanding of this topic with this quiz. Take the test and evaluate yourself. Also, make your learning better here with us.
- 1.What is the entity concept?
- A.
A boundary is drawn around each organization. This means personal assets and expenses are not part of the company
- B.
You have to report accounting info at regular intervals
- C.
You only use GAAP for things that really make a difference or are significant to the company
- D.
Assume the business will continue to operate for the foreseeable future
- 2.What is the matching principle?
- A.
You stick with the same accounting principles and approach from one period to the next
- B.
Record revenue when a service is provided to the customer, whether or not you collect the money due at that moment
- C.
Accountants identify and measure all expenses incurred during the period and match the expenses against revenues earned
- D.
You must report enough information for insiders to make an informed decision about the company
- 3.Which concept states that "You have to report accounting info at regular intervals?"
- A.
Entity
- B.
Conservatism
- C.
Reliability
- D.
Time-Period
- 4.Which principle states that one must "report enough information for outsiders to make informed decisions about the company?"
- A.
Consistency
- B.
Disclosure
- C.
Matching
- D.
Revenue
- 5.The _________ principle tells you when to record revenue, and how much to record. You record revenue when you have provided your goods and services, whether you collect money at that moment or not.
- 6.____________ accounting requires you to take note of both cash collected and as well as accounts receivable.
- 7.The going-concern concept is:
- A.
Reporting accounting info at regular intervals
- B.
Not overstating assets, owner's equity, and revenues, and not understating liabilities and expenses
- C.
Assuming that a business will continue to operate for the foreseeable future
- D.
Reporting numbers without calculating inflation
- 8.Reporting numbers without having to reflect the calculation of inflation is which of the following concepts?
- A.
Stable-monetary-unit
- B.
Time-period
- C.
Materiality
- D.
Entity
- 9.This concept means not overstating assets, owner's equity, and revenues, and not understating liabilities and expenses
- A.
Materiality
- B.
Entity
- C.
Time-period
- D.
Conservatism
- 10.The materiality concept is:
- A.
Only using GAAP accounting for things that are significant to the company's financial statements
- B.
Not overstating assets, owner's equity, and revenues, and not understating liabilities and expenses
- C.
Reporting enough information for insiders to make an informed decision about the company
- D.
Reporting numbers without calculating inflation
- 11.In what principle states that one must base accounting records and statements on the most accurate data available?
- A.
Cost
- B.
Reliability
- C.
Matching
- D.
Consistency
- 12.Recording assets and services, revenues, and expenses at their actual historical cost falls under which principle?
- A.
Consistency
- B.
Matching
- C.
Cost
- D.
Reliability
- 13.The __________ principle means sticking with the same accounting principles or approach from one period to the next.
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