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This preview shows page 1 - 2 out of 4 pages. HOMEWORK – Accounting PrinciplesMultiple Choice – Select the Best Answer:1.Which accounting principle/concept allows accountants to forego making an adjusting entry after year-end close if the amount in question is determined to be financially inconsequential to users of thefinancial statements?a.accounting entity conceptb.conservatism conceptc.materiality conceptd.full disclosure concept 2.What accounting principle requires having the ability to rely on documented information to recordfinancial data? Get answer to your question and much more 3.A company is a going concern if: Get answer to your question and much more 4.Which accounting concept or principle states that the transactions of a business must be recordedseparately from those of its owners or other businesses? Get answer to your question and much more 5.Which of the following states that a transaction is not recorded in the books of accounts unless it ismeasurable in terms of money?a.matching principleb.revenue recognition principlec.monetary unit assumptiond.Accounting period assumption Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 4 pages? Upload your study docs or become a Course Hero member to access this document Tags Generally Accepted Accounting Principles, 1 000, 3 000 000, 1 billion, Feel Better Hospital This preview shows page 1 - 3 out of 5 pages. QuestionsOption AOption BOption COption DCorrect AnswerAccording to accrual concept of accounting, financialor business transaction is recorded:when cash is receivedor paidwhen transaction occurswhen profit iscomputedwhen balance sheet ispreparedBThe John Marketing Company provides advertisingservices to an investment company in year A butreceives advertising fee in year B. The JohnMarketing Company recognizes this revenue in yearBA company is a going concern if:its balance sheet showsa strong financialpositionits income statementfor the current yearshows huge profitthere is no evidencethat it will or will haveto cease operationswithin foreseeablefuture.Which accounting concept or principle states that thetransactions of a business must be recorded separatelyfrom those of its owners or other businesses?The business or economic entity concept is applicableto:sole proprietorshipform of businesspartnership form ofbusinessCorporate form ofbusinessall of the aboveDWhich of the following states that a transaction is notrecorded in the books of accounts unless it ismeasurable in terms of money?Which one of the following states that the life of abusiness can be divided into equal time periods?The revenue is not recognized until it is earned andrealized or at least realizable. To which accountingprinciple/concept this statement belongs?The auditor noticed that the financial statements ofMeta Company were missing some footnotesimportant for users for decision making. This actionof the management is a violation of:materiality conceptgoing concern concepteconomic entity concept full disclosure conceptDIn certain situations, companies might recognizelosses but not gains. This action belongs to:Accounting Concepts and Accounting Conventions The Modern Enterprises reported all assets in thebalance sheet at current market value. This action is a Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 5 pages? Upload your study docs or become a Course Hero member to access this document Tags Generally Accepted Accounting Principles, John Marketing Company Which of the following states that a transaction is not recorded in the book of accounts unless it is measurable terms of money?The monetary unit principle states that business transactions should only be recorded if they can be expressed in terms of a currency. In other words, anything that is non-quantifiable should not be recorded a business' financial accounts.
Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses Mcq?This concept is called business entity concept. It means that personal transactions of owners are treated separately from those of the business. Therefore any personal expenses incurred by owners of a business will not appear in the income statement of the entity. Was this answer helpful?
Which one of the following states that the life of a business can be divided into equal time periods Mcq?The time period assumption states that the economic life of a business can be divided into a. equal time periods.
Which concept states that dollar does not lose its value?A better answer is the cost principle. Keeping the asset amount at cost is due to the cost principle. The monetary unit assumption is that the dollar is stable over time—no inflation.
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Which of the following state that a transaction is not recorded in the book of accounts unless it is measurable in terms of money Mcq?
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