Theoretical Framework Online Test

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Theoretical Framework

Description: This test covers the basic concepts of accounting along with the theoretical framework.
Number of Questions: 20
Created by: Prajapati Rathore
Tags: Basic concepts and conventions Theoretical Framework

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The provision for bad debts should be made in the books of accounts on the basis of

going concern concept
convention of consistency
Convention of coservatism
Convention of materiality

According to which concept of accounting, the goods withdrawan by the proprietor should be recorded as drawings of the business?

Accounting period concept
Going concern concept
Dual concept
Business entity concept

According to which convention of accounting, the contingent liability should be shown as a footnote of balance sheet?

Convention of conservatism
Convention of consistency
Convention of disclosure
Convention of materiality

The concept of conservatism is also known as

going concern concept
prudence concept
accounting period concept
dual aspect

The accounting equation Assets = Liabilities + Capital is based on which of the following accounting principles?

Dual aspect
Going concern concept
Entity concept
Accounting period concept

The depreciation on fixed assets should be shown in the profit & loss account every year. It is according to

going concern concept
dual aspect
entity concept
accounting period concept

The cost price of a long term investment is Rs. 25,000 but its current market value is Rs. 15,000. The investment is likely to fetch Rs. 40,000 at its maturity. What should be the value which should be recorded in the books for this investment?

Rs. 25,000
Rs. 15,000
Rs. 40,000
Rs.20,000

The non-monetary transactions are ignored to be recorded in the books due to

going concern concept
dual aspect
concept of cosvervatism
money measurement concept

A business calculates stock at the end of every year according to FIFO or LIFO or weighted average method according to its suitability every year. Which accounting principle is violated?

Going concern concept
Accounting period concept
Convention of consistency
Concept of conservatism

According to which concept of accounting, the expenses of a particular period should be charged against the revenue earned during that period?

Dual aspect
matching concept
Cost concept
Realisation concept

The concept of conservatism takes into account

all future profits and losses
no future profits & losses
all future profits only
all future losses only

Which accounting standard is concerned with accounting for intangible assets?

AS-14
AS-18
AS-19
AS-26

Which of the following concepts is not applicable to the joint venture business?

Going concern concept
Dual aspect
Accrual concept
Matching concept

The value of residual postage stamps of the small amount lying in the business may not be shown in the books of accounts. It is as per

consistency convention
convention of materiality
convention of conservatism
dual aspect

The cash system of accounting records the transactions relating to

current year only
past years only
future years only
all current, past and future periods.

How many accounting standards have been issued by ICAI till date?

Which accounting standard is concerned with cash flow statement?

AS-3
AS-6
AS-10
AS_13

Which of the following accounting systems produces more accurate result of profits or losses?

Cash system
Mercantile system
Both cash and mercantile system
Accounting period concept

Which of the following systems of accounting is generally followed by professionals and not by the business enterprises?

Cash system
Mercantile system
Both cash and mercantile system
Accounting period

Anticipate no profits but provide for all possible losses is concerned with which concept?

Cost concept
Entity concept
Convention of conservatism
Accrual concept

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