Accounting principles

Which example shows the materiality principle being applied?

Feb/March 2020

Which accounting principle says that revenue must not be recognised until it has been earned?

Feb/March 2020

Which accounting objective means that financial statements should be unbiased and contain no errors?

Feb/March 2020

What is accounting intended to achieve?

Feb/March 2023

To help finance further expansion, the business owner deposited $10000$ into the business bank account. In the ledger, the bank account was debited and the capital account was credited. Which accounting principles were being followed?

Feb/March 2023

Which of the following statements about book-keeping and accounting are correct?

Feb/March 2024

At what stage does a business recognise the income from a sale of goods on credit?

Feb/March 2025

Which statements about book-keeping and accounting are correct?

May/June 2021

Why is it necessary for a trader to match the costs of a financial year with the revenues earned in that same period?

May/June 2021

Which international accounting objectives are being referred to in the statements below?

May/June 2021

Which statements concerning book-keeping and accounting are correct?

May/June 2021

Which international accounting objectives are referred to by the following statements? 1. Information shown in financial statements must be free from material error and bias. 2. Users must be able to recognise differences and similarities between information in different financial statements.

May/June 2021

Which of the following statements about book-keeping and accounting are correct?

May/June 2021

Which international accounting objectives are being referred to by these statements? 1. Information shown in financial statements has to be free from material error and bias. 2. Users must be able to recognise similarities and differences between information in different financial statements.

May/June 2021

What does the accounting equation mean?

May/June 2022

Which of the following statements are correct?

May/June 2022

‘Revenue should be recognised only once the legal title of goods and services passes from the seller to the buyer.’ Which accounting principle is being referred to by this statement?

May/June 2022

‘The information shown in financial statements should be able to be independently checked.’ Which accounting policy is being described by this statement?

May/June 2022

Which of these statements are correct?

May/June 2022

‘Revenue ought to be recognised only when the legal title to goods and services moves from the seller to the buyer.’ Which accounting principle is being described by this statement?

May/June 2022

‘The figures shown in financial statements ought to be able to be checked and confirmed by an independent person.’ Which accounting policy does this statement refer to?

May/June 2022

Manvinder set up a business and deposited a cheque for $1000$ into a business bank account. He entered this in the business records by debiting the bank account and crediting the capital account. Which accounting principles did he apply?

May/June 2023

A trader enters assets and expenses in his ledger at the amount he paid for them. Which accounting principle is being applied?

May/June 2023

A café owner failed to record in her accounts the effect of higher competition after a different café opened close by. Which accounting principle was used?

May/June 2023

Which activity illustrates double entry book-keeping?

May/June 2023

The owner of a café did not record the effect of increased competition in her accounts when another café opened close by. Which accounting principle was used?

May/June 2023

Which transaction illustrates double entry book-keeping?

May/June 2023

Which of the statements is correct?

May/June 2024

When the financial year finished, a manufacturing business still had rent outstanding for its factory. It then made an adjustment to its financial statements to reflect this. What effects did this adjustment have?

May/June 2024

William works as a trader. He has received an order from James for goods to be supplied on credit. At what point should William treat the revenue as having been earned?

May/June 2024

Why does it matter to align costs with revenues?

May/June 2024

Which statement gives the correct description of the principle of realisation?

May/June 2024

Why does it matter to align costs with revenues?

May/June 2024

Which statement gives the correct description of the principle of realisation?

May/June 2024

What do we mean by assets?

May/June 2025

A business does not show the skills or morale of its employees in its financial statements. Which accounting principle is being used?

May/June 2025

What does the objective of understandability assume that users of financial statements will have?

May/June 2025

Which statement is right?

May/June 2025

Vikram wished to use the principle of consistency when recording the use of his delivery van. What did this mean?

May/June 2025

What does the term assets refer to?

May/June 2025

A business does not include the skills or morale of its employees in its financial statements. Which accounting principle is being applied?

May/June 2025

What does the objective of understandability assume users of financial statements are expected to have?

May/June 2025

The financial statements of a business are drawn up on the assumption that it will continue operating for many years ahead. Which accounting principle is being used?

Oct/Nov 2020

What is not one of the aims of international accounting standards?

Oct/Nov 2020

The unique skills possessed by the employees are not shown in a business’s financial statements. Which accounting principle is being used?

Oct/Nov 2020

In what way can a business follow the accounting principle of prudence?

Oct/Nov 2020

Which of the following is not an aim of international accounting standards?

Oct/Nov 2020

The financial statements of a business are drawn up on the assumption that it will keep operating for many years into the future. Which accounting principle is being applied?

Oct/Nov 2020

What is not one objective of international accounting standards?

Oct/Nov 2020

What does the objective of understandability assume users of financial statements have?

Oct/Nov 2021

Which statement is the correct one?

Oct/Nov 2021

Which equations can be used for the accounting equation?

Oct/Nov 2021

Charlie works as a car dealer. Joe wanted a new car, so he visited Charlie’s car showroom. On Monday Joe took a car out for a test drive and chose to buy it. On Tuesday Joe made arrangements to pay for the car by cheque. On Wednesday Joe picked up the car and was given an invoice. On Thursday Joe’s cheque was cleared by the bank. On which day was Charlie able to recognise the profit on the sale?

Oct/Nov 2021

Which accounting objective requires financial information to be available in time for a decision to be taken?

Oct/Nov 2021

What does the objective of understandability presume users of financial statements will have?

Oct/Nov 2021

Which accounting principle, when applied, makes it simpler to compare financial statements from one year to the next?

Oct/Nov 2022

What is ensured by the prudence principle?

Oct/Nov 2022

Which statement is not correct concerning the reasons for adopting international accounting standards?

Oct/Nov 2022

In what sequence would current assets be shown if they are ordered from highest to lowest liquidity?

Oct/Nov 2022

A business had an insurance policy renewed. The full payment was recorded as an expense in the income statement for the year, although one half belonged to the following financial year. Which accounting principle has not been applied?

Oct/Nov 2022

What does the business entity principle mean?

Oct/Nov 2022

Which statement is not correct about the reasons for adopting international accounting standards?

Oct/Nov 2022

Which transaction will cause both assets and capital to rise by the same amount?

Oct/Nov 2022

Which accounting principle, when applied, makes year-on-year comparison of financial statements easier?

Oct/Nov 2022

What does the principle of prudence make sure of?

Oct/Nov 2022

Which statement is not correct regarding the reasons for adopting international accounting standards?

Oct/Nov 2022

Which statement gives the correct description of the accounting equation?

Oct/Nov 2023

Which characteristic of financial information means that financial statements must be set out clearly and is based on the assumption that users of the financial statements have a reasonable knowledge of accounting?

Oct/Nov 2023

A trader measures his inventory using the same method at the close of every financial year. Which accounting principle is the trader following?

Oct/Nov 2023

Which statement gives the correct description of the accounting equation?

Oct/Nov 2023

Which characteristic of financial information means that financial statements must be shown clearly and assumes that users of the financial statements have a reasonable knowledge of accounting?

Oct/Nov 2023

Which accounting principle says that profit should be recorded when ownership of the goods transfers to the customer?

Oct/Nov 2024

A trader bought new fixtures. He paid half of the purchase price in cash and arranged to settle the remaining amount later. What effect does this purchase have on the accounting equation?

Oct/Nov 2024

What accounting principle underpins the accounting equation?

Oct/Nov 2024

Which qualitative factor means financial information is supplied promptly enough for it to be used in decision making?

Oct/Nov 2024

Which accounting principle says that profit should be recognised when ownership of the goods passes to the customer?

Oct/Nov 2024

Antionette chooses to record a calculator purchased for her large business as an expense rather than as a non-current asset, even though it is expected to be used for several years. Which principle did Antionette use when deciding to account for the calculator as an expense?

Oct/Nov 2025

Which action shows the materiality principle being applied?

Oct/Nov 2025

Which factor concerning the quality of financial information means that such information is free from significant errors and bias?

Oct/Nov 2025

Which statement is accurate?

Oct/Nov 2025