Accounting Principles and Concepts
One of the following is not a characteristic of accounting principles:
Results-oriented
Factual
Practical
Summarizing
Summarizing
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One of the following is not an example of the materiality concept:A. Purchase of pencil recorded as an expense instead of including in stock
B. Purchase of car for private use
C. Purchase of plant for business
D. Purchase of building to extend the business
Which of the following is not included in the category of cash?
A. Bank deposits
B. Checks
C. Postdated checks
D. Money orders
When should cash sales be recorded by companies to achieve control objectives?
A. When a purchase order is received from a customer
B. At the point cash sales are made
C. After some period
D. Weekly
Going concern can be defined best as:
A. The concept provides the basis for the formation of the accounting equation.
B. This concept refuses allocation of cost on different accounting periods.
C. This concept discusses the issue of the realization of profit.
D. This concept assumes that the business will operate for a long period of time and will not be dissolved in the near future.
Auditors conduct auditing in accordance with:
A. International Financial Reporting Standards
B. Local Pronouncements/Legislations
C. Financial Accounting Standards Board
D. All of the above
When testing control procedures, the design can easily be tested using:
A. ICQs and walkthrough tests
B. ICQs and judgment samples
C. ICQs and random samples
D. ICQs and ICEC
Balance sheets are based on which of the following formulas?
A. Assets = Liabilities – Stockholder’s equity
B. Assets + Liabilities = Stockholder’s equity
C. Assets + Stockholder’s equity = Liabilities
D. Assets = Liabilities + Stockholder’s equity
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