Quiz 1- F A Unit 1

The matching concept matches which of the following?

• Assets with liabilities

• Capital with income

• Revenues with expenses

• Expenses with capital

According to the Money Measurement Principle

• All transactions and events are recorded

• All transactions and events which can be estimated in money terms are recorded in the books of accounts

• All transactions and events which can be measured in money terms are recorded in the books of accounts

• None of the above

According to the Business Entity Principle

• transactions between the business and its owners are not recorded

• transactions between the business and its owners are recorded considering them to be a one single entity.

• transactions between the business and its owners are recorded from the business point of view

• None of the above

According to the income tax act, a business has compulsory to adopt the accounting period

• From 1st January to 31st December

• From 1st April to 31st March

• From 1st July to 30th June

• None of the above

According to going concern concept

• assets are recorded at cost and are depreciated over their useful life

• assets are valued at their market value at the year end and are recorded in the books of accounts

• assets are valued at their market value, recorded in the books and depreciation is charged on the market value

• None of the above

Concept of consistency means

• All the firms in the same industry should use identical accounting principles and procedures

• All principles and procedures of accounting are utilized

• Accounting principles and methods should remain consistent from one year to another

• All of the above

According to the Revenue Recognition Principle, revenue should be brought into account only when it is actually realized.

• True

• False

Revenues are matched with expenses in accordance with going concern concept.

• True

• False

all information which is relevant to financial statement must be included in the financial statement

• cost principle

• disclosure principle

• reliability principle

• GAAP

Assets =

• Capital -liabilities

• Capital + liabilities

• Capital -depreciation

• liabilities -Profit