Practice Basic Accounting Concepts - 15.3 | 15. Accounting Principles and Concepts | Management 1 (Organizational Behaviour/Finance & Accounting)
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Basic Accounting Concepts

15.3 - Basic Accounting Concepts

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is the Business Entity Concept?

💡 Hint: Think about the separation of finances.

Question 2 Easy

Can employee satisfaction be recorded in financial statements?

💡 Hint: Consider what can be quantified.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does the Business Entity Concept entail?

A) The business and its owner are one.
B) The business is separate from its owner.
C) Only the owner's finances are recorded.

💡 Hint: Think about how business transactions should be reported.

Question 2

True or False: The Money Measurement Concept allows for recording qualitative factors like employee morale.

True
False

💡 Hint: Consider what types of transactions can be quantified.

2 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A company has incurred expenses of ₹1,00,000 for services in March but pays ₹30,000 in April. How should these be recorded according to the Matching Concept?

💡 Hint: Think about the timing of expenses and associated revenues.

Challenge 2 Hard

You purchase a piece of equipment for ₹2,00,000, which later depreciates to ₹1,50,000. How will you manage this according to the Cost and Going Concern Concepts?

💡 Hint: Consider how historical costs factor into long-term asset management.

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