We have covered in great details various Accounting Principles. Now it is the time to do some quiz about these accounting concepts to evaluate your understanding. We have made them in MCQs (Mutiple Choice Question format) to allow you make your grip strong over the accounting concepts. Make sure while answering MCQs Quize, it is always think for few minutes to make your final decision. A small mistake can cost you heavily, so be wise and stay calm while answering these questions. Happy doing quize below.
1. In Accrual principle of accounting, we treat business and the owners as two different person. (True / False) 2. Business Entity Concept is also called Economic Entity concept.
3. Time Period Principle requires disclosure of all the material information. (True / False)
4. Financial statements are made on the assumption that the operation of the company will continue for the foreseeable future. (True / False)
5. Monetary unit accounting principle also considers non-monetary transactions in addition to monetary transactions in the preparation of financial statements.
6. Can talented top level staff be recorded as assets in the balance sheet as assets of the company? (Yes / No)
7. Is it necessary to record revenue even risk and rewards associated with the goods and services are not transferred to the buyer. (Yes / No)
8. Matching principle emphasizes that expenses should be recorded in the period in which the related assets are earned. (Yes / No)
9. Substance over form discourages the consideration of transaction just on the basis of legal form.
10. The accountant has to record the expenses and liabilities as soon as possible under Prudence concept. (True / False)
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