GAAP MCQs (11-20)

11. Which of the following is the GAAP that requires the recording of depreciation?

(a) Materially constraints

(b) Matching principle

(c) Cost principle

(d) Time-period principle

Correct! Wrong!

12. Which of the following is true?

(a) FASB creates SEC

(b) GAAP creates FASB

(c) SEC creates AICPA

(d) FASB creates GAAP

Correct! Wrong!

13. The most acceptable method of measuring income is?

(a) To match the cost with revenue

(b) To find out the difference in net worth as on two dates

(c) To apply the average return in industry on capital employed

(d) To apply normal rate of return on capital invested

Correct! Wrong!

14. Assets Reported in the Balance Sheet is at?

(a) Market value

(b) Historical value

(c) At Cost

(d) Both b and c

Correct! Wrong!

15. The revenue recognition principle requires that sales revenues be recognized?

(a) When cash is received

(b) When the merchandise is ordered

(c) When the ownership of goods are transferred from the seller to the buyer

(d) None of the above

Correct! Wrong!

16. Which of the following is the GAAP that requires the recording of depreciation?

(a) Materially constraints

(b) Matching principle

(c) Cost principle

(d) Time-period principle

Correct! Wrong!

17. How are tangible assets, which were created or developed internally, valued?

(a) At their replacement cost

(b) At their liquidation cost

(c) At their present cost

(d) At their historical cost

Correct! Wrong!

18. The requirement that only transaction data capable of being expressed in terms of money is included in the accounting records relates to the?

(a) Cost principle

(b) Monetary unit assumption

(c) Economic entity assumption

(d) Both a and b above

Correct! Wrong!

19. A record maintained which is measurable in the form of money, this concept of accounting is known as?

(a) Matching concept

(b) Consistency concept

(c) Money measurement concept

(d) Materiality concept

Correct! Wrong!

20. The charging of depreciation expense over the life of an asset rather than the immediate full expensing of its cost is an example of?

(a) Consistency

(b) Matching

(c) Prudence

(d) Reliability

Correct! Wrong!

11. Which of the following is the GAAP that requires the recording of depreciation?

12. Which of the following is true?

13. The most acceptable method of measuring income is?

14. Assets Reported in the Balance Sheet is at?

15. The revenue recognition principle requires that sales revenues be recognized?

16. Which of the following is the GAAP that requires the recording of depreciation?

17. How are tangible assets, which were created or developed internally, valued?

18. The requirement that only transaction data capable of being expressed in terms of money is included in the accounting records relates to the?

19. A record maintained which is measurable in the form of money, this concept of accounting is known as?

20. The charging of depreciation expense over the life of an asset rather than the immediate full expensing of its cost is an example of?

Submit a Comment Cancel reply

Search