Accounting Concepts, Principles and Conventions

1. Which of the following is NOT a fundamental accounting assumption?

2. The concept that treats a business as separate from its owner is known as:

3. Under the Accrual Concept, revenue is recognized when:

4. Which accounting concept requires that expenses be matched with the revenue they help generate?

5. The assumption that an enterprise will continue in operation for the foreseeable future is called:

6. Which of the following is a limitation of the Money Measurement Concept?

7. The principle of conservatism states that:

8. Which qualitative characteristic ensures that financial statements can be compared over time?

9. The Dual Aspect Concept is the foundation of:

10. Which of the following is an example of an accounting convention?

11. The Realisation Concept states that:

12. Which accounting concept assumes that the business will not be liquidated in the near future?

13. The Cost Concept values assets at:

14. Which of the following is NOT a qualitative characteristic of financial statements?

15. The principle of materiality allows accountants to:

16. Which accounting concept divides the economic life of an enterprise into periodic intervals?

17. The Consistency Concept requires that:

18. Which of the following is a fundamental accounting equation?

19. The qualitative characteristic that ensures information is free from bias is:

20. Which accounting concept is the basis for the preparation of financial statements?

21. The principle of full disclosure requires that:

22. Which of the following is NOT a widely accepted accounting concept?

23. The concept that requires accounting policies to be followed consistently unless a change is justified is:

24. Which of the following is an example of an accounting principle?

25. The qualitative characteristic that ensures information is free from material error is:

26. The principle of prudence is closely related to:

27. Which accounting concept is the basis for the valuation of assets at historical cost?

28. The qualitative characteristic that ensures information influences economic decisions is:

29. Which of the following is a limitation of the Cost Concept?

30. The principle of substance over form requires that:

31. Which of the following is a fundamental accounting assumption?

32. The concept that requires financial statements to be prepared at regular intervals is:

33. Which of the following is NOT a qualitative characteristic of financial statements?

34. The principle of faithful representation requires that:

35. Which accounting concept is the basis for the recognition of revenue when it is earned?

36. The principle of conservatism is an example of:

37. Which of the following is a limitation of the Money Measurement Concept?

38. The qualitative characteristic that ensures information is readily understandable is:

39. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

40. The principle of materiality is an exception to:

41. Which of the following is a fundamental accounting assumption?

42. The concept that requires expenses to be recognized in the same period as the revenue they help generate is:

43. Which of the following is NOT a qualitative characteristic of financial statements?

44. The principle of substance over form is closely related to:

45. Which accounting concept is the basis for the recognition of revenue when it is earned and expenses when they are incurred?

46. The principle of conservatism is an example of:

47. Which of the following is a limitation of the Cost Concept?

48. The qualitative characteristic that ensures information is free from material error is:

49. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

50. The principle of materiality is an exception to:

51. Which of the following is a fundamental accounting assumption?

52. The concept that requires expenses to be recognized in the same period as the revenue they help generate is:

53. Which of the following is NOT a qualitative characteristic of financial statements?

54. The principle of substance over form is closely related to:

55. Which accounting concept is the basis for the recognition of revenue when it is earned and expenses when they are incurred?

56. The principle of conservatism is an example of:

57. Which of the following is a limitation of the Cost Concept?

58. The qualitative characteristic that ensures information is free from material error is:

59. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

60. The principle of materiality is an exception to:

61. Which of the following is a fundamental accounting assumption?

62. The concept that requires expenses to be recognized in the same period as the revenue they help generate is:

63. Which of the following is NOT a qualitative characteristic of financial statements?

64. The principle of substance over form is closely related to:

65. Which accounting concept is the basis for the recognition of revenue when it is earned and expenses when they are incurred?

66. The principle of conservatism is an example of:

67. Which of the following is a limitation of the Cost Concept?

68. The qualitative characteristic that ensures information is free from material error is:

69. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

70. The principle of materiality is an exception to:

71. Which of the following is a fundamental accounting assumption?

72. The concept that requires expenses to be recognized in the same period as the revenue they help generate is:

73. Which of the following is NOT a qualitative characteristic of financial statements?

74. The principle of substance over form is closely related to:

75. Which accounting concept is the basis for the recognition of revenue when it is earned and expenses when they are incurred?

76. The principle of conservatism is an example of:

77. Which of the following is a limitation of the Cost Concept?

78. The qualitative characteristic that ensures information is free from material error is:

79. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

80. The principle of materiality is an exception to:

81. Which of the following is a fundamental accounting assumption?

82. The concept that requires expenses to be recognized in the same period as the revenue they help generate is:

83. Which of the following is NOT a qualitative characteristic of financial statements?

84. The principle of substance over form is closely related to:

85. Which accounting concept is the basis for the recognition of revenue when it is earned and expenses when they are incurred?

86. The principle of conservatism is an example of:

87. Which of the following is a limitation of the Cost Concept?

88. The qualitative characteristic that ensures information is free from material error is:

89. Which accounting concept is the basis for the preparation of financial statements in accordance with GAAP?

90. The principle of materiality is an exception to: