Accounting Concepts Test

It is very necessary to keep uniformity and consistency in preparing and maintaining books of accounts,
certain rules or principles have been evolved. These rules/principles are called as accounting concepts. In financial accounting notes, we have already explained accounting concepts and its importance. Now, we are asking you to solve our following accounting concept test.

Following are 10 accounting concepts related questions. You have to give correct answer out of four options.

Question 1. Separate business entity explains that______________________.

(a) Business and businessman are same entity.

(b) Business is different from businessman.

(c) There is no benefit of recording personal transactions.

(d) Personal expenses are also the part of business expenses.

Question 2. Market value of machine is $ 10000 and original cost is $ 7000. On what value will you record machine as per cost concept?

(a) $ 7000

(b) $ 10000

(c) Average of market value and original cost

(d) Cost or market value which is less

Question 3. Matching concept applies on _____________________

(a) Revenue expenses and incomes.

(b) capital expenditure and capital revenue.

(c) Matching of capital expenditure with revenue expenditures

(d) Matching of revenue items with capital items

Question 4. Which concepts tells about securing of losses

(a) Matching Concept

(b) Cost Concept

(c)  Conservatism Concept

(d) Loss Estimation Concept

Question 5. The goods drawn from business for owner’s personal use are called_________________________.

(a) Capital

(b) Loss

(c) Purchase

(d) Drawing

Question 6. Why does accountant not record the health of a managing director?

(a) Because this is personal information of director.

(b)  Because this is not under cost concept.

(c) Because this is not under money measurement concept.

(d) Because director is officer of company.

Question 7.   The commonly accepted accounting period in India is ____________________.

(a) 1st of April to 31st of March of the following year

(b) 1st of Feb. to 30th of Sept. of the following year

(c) 1st March to 3st Dec.

(d) 1st July to 30th June of following year

Question 8.  The cost concept is otherwise known as ____________concept

(a) Estimated Cost Concept

(b) Future Cost concept

(c) Current Cost concept

(d) Historical Cost Concept

Question 9. Goods sold for cash. The two aspects are __________________

(a) Decrease of goods in our hand and increase of goods in customer hand

(b) Payment of Cash and receipt of goods

(c)  Receipt of cash and  Delivery of goods to the customer

(d) Increase of debt and decrease of goods

Question 10. Accrual concept requires revenue is recognized when___________
and expenses are recognised when  ________________________

(a) received, paid

(b)  Receivable, payable

(c) we deposit income in bank account, when bank issues payment

(d)   accounting period ends, accounting period ends

Answers : 1 (b) 2 (a)   3 (a)    4  (c)     5  (d)   6 (c)    7 (a)   8  (d)   9  (c)   10 (b)


Comments on this Website
Share above Content to Your Friends


access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Accounting Concepts Test
Accounting Concepts Test
Accounting Education
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock