Accounting- Basics


10 questions

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  • 1. Multiple-choice
    1 minute
    1 pt

    According to accrual concept of accounting, financial or business transaction is recorded:

    When cash is received or paid

    When transaction occurs

    When profit is computed

    When balance sheet is prepared

  • 2. Multiple-choice
    1 minute
    1 pt

    The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by:

    Business entity concept

    Revenue recognition principle

    Economic entity concept

    Going concern concept

  • 3. Multiple-choice
    1 minute
    1 pt

    Which accounting concept or principle states that the transactions of a business must be recorded separately from those of its owners or other businesses?

    Materiality concept of accounting

    Time period concept of accounting

    Matching principle of accounting

    Business or economic entity concept of accounting

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