(A) Cost Concept
(B) Realization Concept
(C) Matching Concept
(D) Both (a) and (c) above
Tag: Financial Accounting Mcqs
Under which of the following concepts are shareholders treated as creditors for the amount they paid on the shares they subscribed to?
(A) Cost Concept
(B) Duality Concept
(C) Business Entity Concept
(D) Since the shareholders own the business, they are not treated as creditors
If the Going Concern concept is no longer valid, which of the following is true?
(A) All prepaid assets would be completely written-off immediately
(B) Total contributed Capital and Retained Earnings would remain unchanged
(C) Intangible Assets would continue to be carried at net Amortized historical cost
(D) Land held as an Investment would be valued at its realizable value
P & L Account is prepared for a period of one year by following?
(A) Consistency Concept
(B) Conservatism Concept
(C) Accounting Period Concept
(D) Cost Concept
Only the significant events which affect the business must be recorded as per the principle of?
(A) Separate Entity
(B) Accrual
(C) Materiality
(D) Going Concern
Which of the following is (are) characteristic(s) of Bad Debt?
(A) It is a definite loss to the business
(B) It must be shown in Profit & loss account
(C) No provision is necessary for it
(D) All of the given options
The basic concepts related to P & L Account are?
(A) Realization Concept
(B) Matching Concept
(C) Cost Concept
(D) Both (a) and (b) above
The basic concepts related to Balance Sheet are?
(A) Cost Concept
(B) Business Entity Concept
(C) Accounting Period Concept
(D) Both (a) and (b) above