ACCCOB1 Accounting Principles
Questions With Answers Verified
100%| Graded A+
General Principles - ANSWER 1. Historical cost principle
2. Revenue recognition principle
3. Matching principle
4. Accrual basis principle
5. Full disclosure principle
Modifying Constraints - ANSWER 1. Materiality
2. Cost-benefit analysis
3. Conservatism
4. Industry practice
Qualitative Characteristics - ANSWER 1. Usefulness
2. Understandability
3. Relevance
4. Reliability
5. Neutrality
6. Comparability
7. Consistency
, Entity Concept - ANSWER A business or an organization and its
owners are treated as two separate parties. Establishes
boundaries in what should be recorded in the financial statements
of the business.
Going Concern / Continuity Assumption - ANSWER States that
businesses are assumed to continue to operate into the future
unless there is an evidence that the business will not continue to
operate. Going concern will then become liquidating concern.
Monetary Unit Concept - ANSWER Only transactions and events
that are capable of being measured in monetary terms are
recognized in the financial statements.
GAAP - ANSWER Generally Accepted Accounting Principles.
The standards and rules that accountants follow while recording
and reporting financial activities. It encompasses the procedures
accepted in the accounting process.
IASB - ANSWER International Accounting Standards Board.
They actively develop and issue accounting standards that will to
be followed internationally. Its purpose is to narrow down the
differences in the world when preparing a financial statement.
Conceptual Framework of Financial Reporting - ANSWER 1.
Underlying Assumption
a. Entity principle
b. Going concern
c. Monetary Unit
d. Time Period
2. General Principles
a. Historical cost principle
b. Revenue recognition principle
c. Matching principle
d. Accrual basis principle
e. Full disclosure principle
Questions With Answers Verified
100%| Graded A+
General Principles - ANSWER 1. Historical cost principle
2. Revenue recognition principle
3. Matching principle
4. Accrual basis principle
5. Full disclosure principle
Modifying Constraints - ANSWER 1. Materiality
2. Cost-benefit analysis
3. Conservatism
4. Industry practice
Qualitative Characteristics - ANSWER 1. Usefulness
2. Understandability
3. Relevance
4. Reliability
5. Neutrality
6. Comparability
7. Consistency
, Entity Concept - ANSWER A business or an organization and its
owners are treated as two separate parties. Establishes
boundaries in what should be recorded in the financial statements
of the business.
Going Concern / Continuity Assumption - ANSWER States that
businesses are assumed to continue to operate into the future
unless there is an evidence that the business will not continue to
operate. Going concern will then become liquidating concern.
Monetary Unit Concept - ANSWER Only transactions and events
that are capable of being measured in monetary terms are
recognized in the financial statements.
GAAP - ANSWER Generally Accepted Accounting Principles.
The standards and rules that accountants follow while recording
and reporting financial activities. It encompasses the procedures
accepted in the accounting process.
IASB - ANSWER International Accounting Standards Board.
They actively develop and issue accounting standards that will to
be followed internationally. Its purpose is to narrow down the
differences in the world when preparing a financial statement.
Conceptual Framework of Financial Reporting - ANSWER 1.
Underlying Assumption
a. Entity principle
b. Going concern
c. Monetary Unit
d. Time Period
2. General Principles
a. Historical cost principle
b. Revenue recognition principle
c. Matching principle
d. Accrual basis principle
e. Full disclosure principle
