The Accounting Concepts: Entity Concept, Going Concept, Money Measurement - SS1 Accounting Past Questions and Answers - page 1
Which accounting concept assumes that a business will continue to operate into the foreseeable future?
Entity concept
Going concern concept
Monetary unit concept
Cost concept
Which accounting concept requires that only monetary transactions should be recorded in a business's financial statements?
Entity concept
Going concern concept
Monetary unit concept
Cost concept
Which accounting concept assumes that assets should be recorded at their historical cost?
Entity concept
Going concern concept
Monetary unit concept
Cost concept
Which accounting concept requires that expenses be matched with the revenue they generate?
Entity concept
Going concern concept
Matching concept
Accruals concept
Which accounting concept requires that revenue and expenses be recorded when they are earned or incurred, rather than when payment is received or made?
Matching concept
Accruals concept
Consistency concept
Cost concept
What is the entity concept in accounting?
The entity concept treats the business as a separate entity from its owners, meaning that its financial transactions are separate from those of its owners.
What is the purpose of the consistency concept in accounting?
The consistency concept requires that accounting methods and practices be consistent over time so that financial statements can be compared across periods.