Practice Key Concepts - 14.4.2 | 14. Introduction to Financial and Management Accounting | Management 1 (Organizational Behaviour/Finance & Accounting)
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14.4.2 - Key Concepts

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does the Going Concern principle assume?

💡 Hint: Think about how businesses plan for the future.

Question 2

Easy

Explain the Accrual Concept in your own words.

💡 Hint: Consider when revenues and expenses are recognized.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the assumption of the Going Concern principle?

  • The company will be liquidated
  • The company will continue to operate
  • The company will cease operations immediately

💡 Hint: Consider what businesses aim for in terms of future operations.

Question 2

T/F: The Accrual Concept records transactions when cash is exchanged.

  • True
  • False

💡 Hint: Think about the timing of recognizing transactions.

Solve 3 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has reported profits by recognizing sales that haven't been collected in cash yet. Discuss the implications of this practice in light of the Accrual Concept and Prudence principle.

💡 Hint: Consider how this would affect future financial statements.

Question 2

Analyze a situation where a company changes its accounting method for expense recognition mid-year. What challenges does this present for consistency, and how should the company address them?

💡 Hint: Think about transparency in financial reporting and its significance.

Challenge and get performance evaluation