Accounting principles and concepts
Fill-in-the-blanks quiz

By: Rashid Javed | Updated on: September 11th, 2022

Directions!

Read the whole text carefully and think the correct word that should fill in the blank space(s) and then confirm your answer by pressing the 'see answer' button. Don't press the 'see answer' button before reading the question text.

If you are unable to solve these fill-in-the-blank questions, read "accounting principles and concepts" chapter from explanations section of our website.

Question: 1
A company or firm is said to be a when there is no evidence to believe that it will or will have to close its business in foreseeable future.
Question: 2
According to accrual concept of accounting, the expenses must be recognized when they are and not when cash payment for them is made.
Question: 3
According to principle of accounting, the revenues and the related expenses are matched in the same period to which they relate.
Question: 4
The transactions of a business must be recorded separately from those of any other business and its owner. This statement belongs to .
Question: 5
Only those events and transactions that can be measured in can be recorded in accounting records.
Question: 6
According to time period assumption, the life of a business can be divided into .
Question: 7
The accounting principle that guides us when to recognize revenue in accounting records is known as principle.
Question: 8
An item is considered if its inclusion or omission significantly impacts the decision making ability of the users of financial statements.
Question: 9
A(n) is an item that has very little or no impact on decision making ability of the users of financial statements.
Question: 10
Materiality depends on the dollar amount as well as on the of the item or event.
Question: 11
Materiality refers to the importance of a specific item in relation to the other items on the .
Question: 12
While assessing materiality, accountants not only take into account the individual itmes but also the cumulative effect of all items.
Question: 13
According to historical cost concept, the assets and liabilities should be recorded at their
Question: 14
Accounts receivable are presented in the balance sheet at their value.
Question: 15
Marketable securities are highly liquid investments and are shown in the balance sheet at their value.
Question: 16
A company should use the same accounting policies and methods for recording similar events or transactions from one financial period to another. This statement belongs to principle of accounting.
Question: 17
An entity should not overestimate its revenues, assets and profits and should not underestimate its liabilities, losses and expenses. This statement belongs to concept of accounting.
Question: 18
The concept states that the information provided in the financial statements of an entity should be easily understandable by users.
Question: 19
concept states that the financial statements of an entity of one period should be comparable with that of other periods as well as with the financial statements of other entities in the same industry.
Question: 20
The principle deals with the information disclosure requirements of an entity and is closely related to materiality concept.

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