Accounting Principles and Concepts Quiz

#AccountingQuizAssets & Liabilities are recorded at actual amount of the transaction in the accounting books.Which…

Posted by AccountingQuizzes on Saturday, November 15, 2014

Here is a Brief overview on this Principles of Accounts Quiz with answer.

Here is a brief overview of these accounting concepts.

Money Measurement Concept:

This concept suggests that the transactions & events in a business can be recorded only if they can be measured or expressible in terms of money, that is the monetary unit.

Historical Cost Concept:

Expresses the idea of recording the value of an asset at the acquisition cost, that is at the price at which they are acquired, rather than the current market price that may be higher or lower than the acquisition cost of that asset.

Going Concern:

One of the most popular concepts in accounting, Going Concern assumes that an entity will continue to operate for an indefinite period. We can say that the concern will not halt its business operations or stop business until it completes the commitments, obligations and objectives of its formation.

Consistency:

Consistency Concept suggests that a business entity should use the same accounting treatment & methods over a period of time for recording transactions & events in its books of accounts & financial reporting. If a business concern deviates from certain treatments is has been practicing it should have proper justification & valid support for doing so that can be justified according to accounting & audit standards.

Answer:

The Correct Answer of this Accounting Principles Quiz is Historical Cost Concept.

 

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