Accounting & Auditing 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?