Accounting Principles exam questions with 100% correct answers
Compatibility Principle - answer Information system principle that prescribes an accounting system to conform with a company's activities, personnel, and structure.
Conservatism Constraint - answer Principle that prescribes the less optimistic estimate when two estimates are about equally likely.
Consistency Concept - answer Principle that prescribes use of the same accounting methods over time so that financial statements are comparable across periods.
Control Principle - answer Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities.
Cost-benefit Principle - answer Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity.
Cost-benefit Constraint - answer The notion that the benefit of a disclosure exceeds the cost of the disclosure.
Cost Principle - answer Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Flexibility Principle - answer Information system principle that prescribes an accounting system be able to adapt to changes in the company, its operations, and needs of decision makers.
Full Disclosure Principle - answer Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
Compatibility Principle - answer Information system principle that prescribes an accounting system to conform with a company's activities, personnel, and structure.
Conservatism Constraint - answer Principle that prescribes the less optimistic estimate when two estimates are about equally likely.
Consistency Concept - answer Principle that prescribes use of the same accounting methods over time so that financial statements are comparable across periods.
Control Principle - answer Information system principle that prescribes an accounting system to aid managers in controlling and monitoring business activities.
Cost-benefit Principle - answer Information system principle that prescribes the benefits from an activity in an accounting system to outweigh the costs of that activity.
Cost-benefit Constraint - answer The notion that the benefit of a disclosure exceeds the cost of the disclosure.
Cost Principle - answer Accounting principle that prescribes financial statement information to be based on actual costs incurred in business transactions.
Flexibility Principle - answer Information system principle that prescribes an accounting system be able to adapt to changes in the company, its operations, and needs of decision makers.
Full Disclosure Principle - answer Principle that prescribes financial statements (including notes) to report all relevant information about an entity's operations and financial condition.
