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WAEC questions for "Financial Accounting :: Accounting Concepts and Conventions"
Q1

"Financial statements do not disclose all information users need to know about a firm." This is the concept of

A

consistency

B

money measurement

C

dual aspect

D

materiality

E
Q2

A merchant paid ₦180,000 on rent for 18 months but charged ₦120,000 to profit and loss account for the year. The concept applied is

A

business entity

B

going concern

C

accrual

D

materiality

E
Q3

The practice of identifying the one constant approach where a number of approaches exist for solving an accounting problem is the convention of

A

conservatism

B

consistency

C

prudence

D

materiality

E
Q4

The assumption that a business has perpetual existence is recognised by

A

entity concept

B

periodicity concept

C

going-concern concept

D

realisation concept

E
Q5

The accounting principle which states that for every debit entry, there is a corresponding credit entry is recognised by

A

realisation concept

B

entity concept

C

going concern concept

D

dual aspect concept

E
Q6

Which of the following is not an accounting convention?

A

Materiality

B

Consistency

C

Business entity

D

Periodicity

E
Q7

Which of the following bases of accounting does not make allowance for depreciation?

A

Cash basis

B

Accrual basis

C

Matching basis

D

Commitment basis

E
Q8

The basis of accounting which eliminates debtors and creditors is

A

cash basis

B

accrual basis

C

fund basis

D

commitment basis

E
Q9

Whatever is fed into the computer is exactly what would be processed and produced as output. This is the concept of

A

sorting out

B

last in, first out

C

first in, first out

D

garbage in, garbage out

E
Q10

"A business unit is assumed to operate into foreseeable future and earn reasonable net income." This statement is emphasizes by the concept of

A

business entity

B

going concern

C

realization

D

accrual

E
Q11

Which of the following is not an accounting concept?

A

Periodicity

B

Accuracy

C

Consistency

D

Objectivity

E
Q12

Transactions are governed by legal principles, but are nevertheless accounted for an presented in accordance with the substance and financial reality. This is in compliance with the principle of

A

substance over form

B

prudence

C

objectivity

D

materiality

E
Q13

The accounting concept which allows the use of a partical method for treating a transaction for a reasonable number of years is

A

consistency

B

cost

C

accrual

D

conservatism

E
Q14

The accounting concept that supports the application of double entry book-keeping is the

A

going concern concept

B

dual aspect concept

C

historical cost concept

D

consistency concept

E
Q15

Which of the following is a limitation of the money measurement concept?

A

Efficient management is not diclosed

B

There is no basis for comparison

C

Inter-period comparison is impossible

D

It does not allow choice of methods

E
Q16

Which of the following is not an accounting concept?

A

Entity

B

Going-concern

C

Consistency

D

Historical cost

E
Q17

A trader is paid ₦15,000 on rent for 15 months but charged ₦12,000 to the Profit and Loss Account for the year. This is the concept of

A

accrual

B

materiality

C

prudence

D

going-concern

E
Q18

"Accountants do not count chickens before they are hatched". This is the concept of

A

accrual

B

materiality

C

realisation

D

going-concern

E
Q19

"The Accountant thinks the investment in the books are worthless." This is

A

consistency concept

B

objectivity concept

C

conservatism concept

D

money measurement concept

E
Q20

Profits are recognised when goods are sold. What concept is this?

A

Realization

B

Matching

C

Periodicity

D

Going concern

E