Tag: basic accounting principles and concepts

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Questions Related to basic accounting principles and concepts

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Measurement discipline deals with __________________.

  1. Identification of objects and events.

  2. Selection of scale

  3. Evaluation of dimension of measurement scale.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Measurement discipline in accounting encompasses the identification of objects, the selection of appropriate measurement scales, and the evaluation of those scales to ensure accuracy.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

An in-depth examination to detect a suspected fraud in an enterprise may be termed as ___________.

  1. Internal audit

  2. Management audit

  3. Financial audit

  4. investigation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An investigation is a specialized, in-depth examination conducted to uncover specific facts, such as suspected fraud, which differs from a routine financial or management audit.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Consider the following statements :
A mutual fund helps the investor in securing -
1. Professional management 
2. Diversification of risk
3. Steady appreciation
4. Lower cost of operation
Of these statement following is correct :

  1. 1, 2, 3 and 4

  2. 1, 2 and 4

  3. 2 and 3

  4. 3 and 4
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Mutual funds provide professional management, risk diversification, potential for appreciation, and economies of scale, which effectively lowers the cost of operation for individual investors.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Information Gatekeepers come under ____________ sources.

  1. Documentary

  2. Human

  3. Institutional

  4. Neo-conventional
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Information Gatekeepers, such as libraries or information centers, are classified as documentary sources because they provide access to recorded information.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Suppose, a Cement manufacturing company allows a post supply discount of ' 5/-Cores to his Distributor without any prior agreement to that effect or without disclosing the same at the time of supply. Whether, it is a Deemed Supply or Not?

  1. Yes

  2. No

  3. Subject to the Individual Circumstances

  4. None of the Above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under GST law, a discount is only deductible from the transaction value if it is known at or before the time of supply and specifically linked to relevant invoices. Since this discount was provided without prior agreement or disclosure at the time of supply, it does not qualify for exclusion, making the full value subject to tax.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Accounting principles are generally based on _________.

  1. Practicability

  2. Subjectivity

  3. Convenience in Recording

  4. Applicability
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Certain accounting principle concepts and conventions are formulated which are not static and are adaptable to changes according to the changing need of the business. 

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Accounting principles are generally based upon _________________.

  1. Practicability

  2. Subjectivity

  3. Convenience in recording

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Accounting principles can be defined as rule of conduct or action. These are the general laws used with the theory and practices of accounting. These are broad guidelines and adaptability of the same depends on the the internal characteristics of the firm. 

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Accounting principles are divided into two types. These are _________.

  1. Accounting Concepts

  2. Accounting Conventions

  3. Accounting Standards

  4. Accounting Concepts & Accounting Conventions
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting principles can be defined as rule of conduct. These are general laws used with the theory and practices of accounting. These are the broad guidelines, and adaptability of the same depends on the nature of the firm or business.


These principles can be classified into two parts:
1) Accounting Concepts
2) Accounting Conventions

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Rules of action or conduct adopted by the accountants universally while recording accounting transaction _______________.

  1. Accounting convention

  2. Accounting concepts

  3. Accounting principles

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Accounting is based on certain concepts and conventions which are called as generally accepted accounting principles. On the basis of these principles, whole accounting function is performed. These can be classified as:

Concepts:
1) Separate Entity Concept
2) Money measurement Concept
3) Periodicity Concept
4) Dual Aspect Concept
5) Going Concern Concept
6) Cost Concept
7) Realization Concept
8) Matching Concept
Conventions:
 1) Full Disclosure
2) Materiality
3) Consistency
4) Conservatism

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Custom and traditions which guide the accountant while preparing the accounting statements _______________.

  1. Accounting convention

  2. Accounting concepts

  3. Accounting principles

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Accounting is based on certain concepts and conventions which are called as generally accepted accounting principles. On the basis of these principles, whole accounting function is performed. These can be classified as:

Concepts:
1) Separate Entity Concept
2) Money measurement Concept
3) Periodicity Concept
4) Dual Aspect Concept
5) Going Concern Concept
6) Cost Concept
7) Realization Concept
8) Matching Concept
Conventions:
 1) Full Disclosure
2) Materiality
3) Consistency
4) Conservatism