MCQs

Which accounting concept requires revenue to be recognized when earned, not when cash is received?

Under the matching principle, expenses should be recorded in the same period as which of the following?

Which concept assumes a business will continue operating for the foreseeable future?

The prudence concept in accounting is best described as:

Which accounting principle requires the same accounting methods to be used from one period to the next?

Under the business entity concept, the owner's personal transactions are:

Which of the following is an example of a fixed asset?

The double-entry system of accounting is based on which fundamental rule?

In the accounting equation, Assets = Liabilities + Owner's Equity, an increase in liabilities with no change in assets means:

Which financial statement shows a company's revenues and expenses over a period of time?

The balance sheet reports a company's financial position as of:

Which of the following is classified as a current liability?

Retained earnings represent:

Which depreciation method allocates an equal amount of expense each year over an asset's useful life?

Which depreciation method results in higher depreciation expense in the earlier years of an asset's life?

Depreciation is best described as:

Which inventory valuation method assumes the oldest inventory items are sold first?

Which inventory method is NOT permitted under IFRS?

The weighted average cost method calculates inventory value by:

Which financial statement reports cash inflows and outflows from operating, investing, and financing activities?