Which principle is used to enter all small expenses in one account?
Materiality
Matching
Historical cost
Accrued
Matching principle is an extension of:
Going concern principle
Cost principle
Money measurement principle
Realization principle
If a situation arises where applying another accounting principle would be contrary to all other principle, here we may use the principle of:
Prudence
Cost
Consistency
Which principle over rules all other principles?
‘Never anticipate profit, but provide for all possible losses”. This phrase is used to describe the principle of:
Historical cost principle is closely linked with a principle. Identify the principle.
Going concern
Money measurement
Entity principle
In business, accounting records are always maintained on the basis of:
End will be soon
Anticipating profit
Assumed loss
Assumed continuity
If the accountants does not follow this rule or concept in recording transactions, it will lead to:
Easy comparison
Impossible to understand
Simple
Time saving
What is the strength of a going concern concept?
Business will close down in near future
No profit
No legal formalities
Business continues to function for indefinite period
The revenue of the accounting period is matched against the costs of the same period. This principle is:
Matching principle
Monetary principle
Accounting entity