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ABOUT THIS QUIZ:
- Chapter: Accounting principles and concepts
- Quiz Type: Multiple choice questions (MCQs) quiz
- Number of MCQs: 16
- Total Points: 16
- Approximate Time Required: 10 – 15 minutes
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Question 1 of 16
According to accrual concept of accounting, financial or business transaction is recorded:
Question 2 of 16
The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by:
Question 3 of 16
A company is a going concern if:
Question 4 of 16
Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?
Question 5 of 16
The business or economic entity concept is applicable to:
Question 6 of 16
Which of the following states that the dollar does not lose its value:
Question 7 of 16
Which of the following states that a transaction is not recorded in the books of accounts unless it is measurable in terms of money?
Question 8 of 16
Which one of the following states that the life of a business can be divided into equal time periods?
Question 9 of 16
The revenue is not recognized until it is earned and realized or at least realizable. To which accounting principle/concept this statement belongs?
Question 10 of 16
Sony, a multinational electronics corporation, rounds dollar amounts in its financial statements to the nearest $1,000. Which accounting principle/concept justifies this action?
Question 11 of 16
The auditor noticed that the financial statements of Meta Company were missing some footnotes important for users for decision making. This action of the management is a violation of:
Question 12 of 16
A fixed asset costing $30,000 is depreciated over its estimated useful life of 15 years. This action is related to:
Question 13 of 16
In certain situations, companies might recognize losses but not gains. This action belongs to:
Question 14 of 16
The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:
Question 15 of 16
Which accounting principle/concept allows accountants to ignore other accounting principle/concept if the amount in question is immaterial?
Question 16 of 16
Which of the following is taken into account While determining the materiality of an amount?