Fundamental Concepts And Principles In Accounting Quiz

14 Questions | By Geopoet | Updated: Jul 2, 2022 | Attempts: 3937

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Fundamental Concepts And Principles In Accounting Quiz - Quiz

Learn about fundamental concepts and principles in accounting with this quiz, and you are also getting an opportunity to test your current knowledge on the same at the same time. The quiz has MCQ questions about fundamental concepts and principles in accounting that are made in a way that they keep you engaged and give you a fun learning experience. Let's go for it, and best of luck to you!

Questions and Answers

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
- D.
  
  None
9.

The business organization is separate and distinct from that of its owners.
- A.
  
  Entity
- B.
  
  Periodicity
- C.
  
  Going Concern
- D.
  
  None
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.

A 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 of an economic enterprise for specified time periods.
- A.
  
  Entity
- B.
  
  Periodicity
- C.
  
  Going Concern
- D.
  
  None