Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

41.
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?

A. The going concern concept

B. The separate entity concept

C. The prudence concept

D. Matching concept

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42.
The concept of 'separate entity' is applicable to which of the following types of businesses?

A. Sole proprietorship

B. Corporation

C. Partnership

D. All of the above

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43.
Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?

A. Yes

B. No

C. To some extent

D. It depends on the type of business

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44.
The revenue recognition principle dictates that all types of incomes should be recorded or recognized when

A. Cash is received

B. At the end of accounting period

C. When they are earned

D. When interest is paid

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45.
The matching concept matches which of the following?

A. Asset with liabilities

B. Capital with income

C. Revenues with expenses

D. Expenses with capital

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46.
The allocation of owner's private expenses to his/her business violates which of the following?

A. Accrual concept

B. Matching concept

C. Separate business entity concept

D. Consistency concept

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47.
The going concern concept assumes that

A. The entity continue running for forseeable future

B. The entity continue running until the end of accounting period

C. The entity will close its operation in 10 years

D. The entity can't be liquidated

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48.
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:

A. Stable monetary unit concept

B. Unit of measurement concept

C. Money value concept

D. Current swap concept

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49.
Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?

A. Fiscal year

B. Calendar year

C. Accounting period

D. Accrual period

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50.
Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information

A. Concrete

B. Complete

C. Immaterial

D. Material

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Accounting MCQ Questions and Solutions with Explanations | Commerce

41. Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?

Answer & Solution

42. The concept of 'separate entity' is applicable to which of the following types of businesses?

Answer & Solution

43. Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?

Answer & Solution

44. The revenue recognition principle dictates that all types of incomes should be recorded or recognized when

Answer & Solution

45. The matching concept matches which of the following?

Answer & Solution

46. The allocation of owner's private expenses to his/her business violates which of the following?

Answer & Solution

47. The going concern concept assumes that

Answer & Solution

48. American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:

Answer & Solution

49. Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?

Answer & Solution

50. Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information

Answer & Solution

Read More Section(Accounting)

41.
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?

42.
The concept of 'separate entity' is applicable to which of the following types of businesses?

43.
Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?

44.
The revenue recognition principle dictates that all types of incomes should be recorded or recognized when

45.
The matching concept matches which of the following?

46.
The allocation of owner's private expenses to his/her business violates which of the following?

47.
The going concern concept assumes that

48.
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:

49.
Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?

50.
Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information