Accounting Concepts Quiz

Which concept states that only items measurable in monetary terms are recorded?

• Matching

• Separate Legal Entity

• Money Measurement

• Dual Aspect

What is the primary focus of the Accrual Concept?

• Recording only cash transactions

• Recording revenue and expenses when incurred, regardless of cash flow

• Ignoring expenses

• None of the above

Which of the following does not fall under the Money Measurement Concept?

• Employee skills

• Cash in bank

• Inventory value

• Business goodwill

According to the Separate Legal Entity concept, who is liable for business debts in a corporation?

• Owner personally

• The business itself

• Business manager

• None of the above

The Matching Principle aligns which of the following in the same accounting period?

• Assets and liabilities

• Income and expenses

• Cash flow and expenses

• All transactions

Which concept implies that transactions have two equal sides, debit and credit?

• Dual Aspect

• Money Measurement

• Separate Legal Entity

• Matching

Why is the Money Measurement Concept limited in representing a complete business picture?

• Non-monetary aspects are omitted

• All values are recorded

• Cash transactions are ignored

• Only current assets are recorded

Under the Separate Legal Entity concept, which is true for a corporation?

• Business and owner are the same for accounting

• Business is independent of its owners

• Personal debts of the owner are recorded in business accounts

• None of the above

Which concept requires the revenue to be recorded only when earned, not when cash is received?

• Dual Aspect

• Accrual

• Matching

• Money Measurement

Which of these would be recorded under the Money Measurement Concept?

• Brand reputation

• Cash at bank

• Employee productivity

• Business goodwill