Edexcel Concepts Questions

A sole trader included the purchase of a motor vehicle for private use as a business asset.

Which accounting concept has not been complied with?

• accruals

• business entity

• going concern

• materiality

At the end of the financial year a trader added monies outstanding for rent to the

rent amount paid during the year to obtain the total rent for the year.

Which accounting concept was being adhered to?

• accruals

• business entity

• going concern

• materiality

A trader always uses the diminishing balance method of depreciation for machinery.

Which accounting concept is being applied?

• accrual

• consistency

• mareiality

• going concern

Which accounting concept is being applied when a business uses the same method

of depreciation each year?

• business entity

• consistency

• money measurement

• prudence

A trader includes the cost of small items of office equipment as expenses in the income statement.

Identify which accounting concept is being applied.

• Accruals

• Business entity

• Materiality

• Prudence

Which is not an accounting concept?

• Business entity

• Confidentiality

• Consistency

• Materiality

The skills and knowledge of a workforce is not shown as an asset in the financial statements.

Which accounting concept is being applied?

• Business entity

• Consistency

• Materiality

• Money measurement

At the end of the financial year a business owed one month’s rent. This was added to rent paid during the year to calculate the total rent for the year. Which accounting concept is being followed?

• accruals

• business entity

• money measurement

• prudence