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)






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Accounting Education: Accounting Concepts Test
Accounting Concepts Test
Accounting Education
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