1) Items should be recorded at their initial cost of purchase a) Consistency concept b) Historical cost concept c) Prudence concept d) Materiality concept 2) Expenses incurred must recorded with income earned in the same accounting period a) Going concern concept b) Revenue Recognition concept c) Monetary concept d) Accounting entity concept e) Matching concept 3) A cost is considered material if it affects the business decision-making. a) Objectivity concept b) Materiality concept c) Monetary concept d) Prudence concept 4) Business is considered a separate entity from the owner a) Accounting Entity concept b) Consistency concept c) Going Concern concept d) Objectivity concept e) Revenue Recognition concept 5) Business life is divided into specific periods of time. a) Consistency concept b) Historical cost concept c) Accounting entity concept d) Accounting period concept 6) Business transactions should be recorded regardless whether cash is paid of received. a) Accounting entity concept b) Accrual basis of accounting concept c) Accounting period concept d) Revenue Recognition concept 7) The same accounting method should be applied a) Historical cost concept b) Monetary concept c) Consistency concept d) Prudence concept e) Accounting period concept 8) The business will continue to operate forever. a) Historical cost concept b) Consistency concept c) Revenue Recognition concept d) Going Concern concept 9) Only record transactions that has dollar value. a) Monetary concept b) Matching concept c) Materiality concept d) Objectivity concept 10) Revenue will be recorded when goods have been delivered. a) Accounting entity concept b) Accounting period concept c) Accrual basis of accounting concept d) Revenue Recognition concept

Accounting concepts

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