GAAP MCQs (1-10)

1. Specific business entity separate from personnel affair of the owner is?

(a) Objectivity principle

(b) Stable currency principle

(c) Entity principle

(d) Matching principle

Correct! Wrong!

2. According to money measurement concept, which one of the following will be recorded in the books of accounts?

(a) Excellent moral of workers

(b) Cost of Machinery

(c) Managing ability of the manager

(d) Quality control in the business

Correct! Wrong!

3. A company purchased a computer, office furniture and office supplies by issuing a check for Rs. 5,000 and a note payable for Rs. 19,500. The market value of the item was Rs. 26,300. The total recorded value of the items are?

(a) Rs. 26,300

(b) Rs. 19,500

(c) Rs. 24,500

(d) Rs. 31,300

Correct! Wrong!

4. The currency remains more or less stable and rate of inflation is almost zero is?

(a) Objectivity principle

(b) Stable dollar principle

(c) Dual aspect concept

(d) Matching principle

Correct! Wrong!

5. Contingent liability appears as a footnote in the balance sheet. This is in accordance with the accounting principle?

(a) Consistency

(b) Disclosure

(c) Conservatism

(d) Materiality

Correct! Wrong!

6. Connected with cost principles, assets required for used not for resale?

(a) Cost principle

(b) Accounting principle

(c) Going concern assumption

(d) None of them

Correct! Wrong!

7. Which principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond?

(a) Prudence Principle

(b) Matching Principle

(c) Going Concern Principle

(d) Consistency Principle

Correct! Wrong!

8. A business is treated, as an entity is its own right, separate from its owner is called?

(a) Dual aspect concept

(b) Money measurement concepts

(c) Matching concept

(d) Separate entity concept

Correct! Wrong!

9. Assets are usually shown in Balance Sheet at?

(a) Unexpired Cost

(b) Replacement Cost

(c) Revalue Cost

(d) Market Value

Correct! Wrong!

10. Which one of the following concept may be stated as "for every debit, there is a credit"?

(a) Separate Entity Concept

(b) Dual Aspect Concept

(c) Money Measurement Concept

(d) Accounting Period Concept

Correct! Wrong!

1. Specific business entity separate from personnel affair of the owner is?

2. According to money measurement concept, which one of the following will be recorded in the books of accounts?

3. A company purchased a computer, office furniture and office supplies by issuing a check for Rs. 5,000 and a note payable for Rs. 19,500. The market value of the item was Rs. 26,300. The total recorded value of the items are?

4. The currency remains more or less stable and rate of inflation is almost zero is?

5. Contingent liability appears as a footnote in the balance sheet. This is in accordance with the accounting principle?

6. Connected with cost principles, assets required for used not for resale?

7. Which principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond?

8. A business is treated, as an entity is its own right, separate from its owner is called?

9. Assets are usually shown in Balance Sheet at?

10. Which one of the following concept may be stated as "for every debit, there is a credit"?

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