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- Name – Quiz 46 – Accounting Principles and Concepts – (Answers)
- Topic – Accounting Principles and Concepts
- Answers with Explanation
Q1. As per the business entity principle, businesses have a separate identity apart from their owners.
Ans. The following statement is True.
Q2. Profit earned during the year is _____ to the capital account of owners.
Ans. Profit earned during the year is credited to the capital account of owners.
Q3. Amount in the _____ of the capital account is a liability of the business.
Ans. Amount in the credit of the capital account is a liability of the business.
Q4. The concept that helps in keeping business affairs free from the influence of the personal affairs of the owner is known as the matching concept.
Ans. The following statement is False. Under the matching concept, all expenses matched with the revenue of that period should only be taken into consideration.
Q5. According to the _____ concept, accounts should be prepared after every period and not at the end of the life of the entity.
Ans. According to the Periodicity concept, accounts should be prepared after every period and not at the end of the life of the entity.
Q6. The economic life of an enterprise is split into periodic intervals to measure its performance as per the _____ concept.
Ans. The economic life of an enterprise is split into periodic intervals to measure its performance as per the periodicity concept.
Q7. The determination of expenses for an accounting period is based on the principle of
Ans. The determination of expenses for an accounting period is based on the principle of Matching.
Q8. Which concept closely follows the cost concept?
Ans. Realisation concept closely follows the cost concept.
Q9. Money measurement concept records only those transactions which can be measured in terms of _____.
Ans. Money measurement concept records only those transactions which can be measured in terms of money.
Q10. The conservatism concept also states that no change should be counted unless it has materialized.
Ans. The following statement is False. The realisation concept also states that no change should be counted unless it has materialised.