Theory Base of Accounting

1. During the life-time of an entity accounting produce financial statements in

accordance with which basic accounting concept:

• Conservation

• Matching

• Accounting period

• None of the above

Recognition of expenses in the same period as associated revenues is called ________ concept.

When information about two different enterprises have been prepared presented

in a similar manner the information exhibits the characteristic of:

• Verifiability

• Relevance

• Reliability

• None of the above

The accounting concept that refers to the tendency of accountants to resolve

uncertainty and doubt in favour of understating assets and revenues and

overstating liabilities and expenses is known as ____________.

3. A concept that a business enterprise will not be sold or liquidated in the near

future is known as :

• Going concern

• Economic entity

• Monetary unit

• None of the above

Revenue is generally recongnised at the point of sale denotes the concept

of _______ ___________.

The primary qualities that make accounting information useful for decision-making

are :

• Relevance and freedom from bias

• Reliability and comparability

• Comparability and consistency

• None of the above

The ___________ concept requires that the same accounting method should

be used from one accounting period to the next.

The ________ concept requires that accounting transaction should be free

from the bias of accountants and others.