Accounting theories quiz
Quiz by Seak You liang
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- Q1
"Transactions are to be supported by reliable and verifiable evidence so that financial statements will be free from biases".
State the accounting theory that applies to the above.
Monetary theory
Accrual basis of accounting theory
Matching theory
Objectivity theory
20s - Q2
"Activities of a business are separate from the activities of an owner." State the accounting theory that applies to the above.
Monetary theory
Accrual basis of accounting theory
Accounting entity theory
Accounting period theory
20s - Q3
"Financial statements should be prepared at regular time intervals to provide timely information for stakeholders to make informed decisions".
State the accounting theory that applies to the above.
Going concern theory
Monetary theory
Accrual basis of accounting theory
Accounting period theory
20s - Q4
"Businesses are assumed to operate indefinitely until it is struck off or liquidated".
State the accounting theory that applies to the above.
Matching theory
Monetary theory
Going concern theory
Accrual basis of accounting theory
20s - Q5
Which of the following explains Matching theory?
Only transactions that can be measured in monetary terms are recorded.
Expenses incurred has to be matched against revenue and income earned in the same period to determine profit for the period.
Revenue is earned when goods have been sold and delivered.
Transactions are to be recorded at original cost.
20s