Category Archives: Basic Accounting

Accounting questions and Quiz

A quiz test fro accounting. 20 questions to test your basic accounting knowledge | A quick Accounting questions and Quiz page with good trivia questions.

Accounting questions and Quiz (Find answers at the bottom of the page) Total- 20 Time- 25 mins.   1. What is the full disclosure concept’s primary concern? ………………………………………………………………………………………………………………… 2. The standard accounting period will be: a. 1 year b. 1 month c. 1 week d. 1 day 3. Completeness needs support of accounting documents. a. […]

Accounting Concepts Definitions Part : 15 ( The realization concept)

The realization concept definition in accounting

Accounting Concepts Definitions Part : 15 The realization concept Accounting principles demand realization of the expense or, revenue which is related to the current year. It demands the same for the expenses or, revenues which are related to a specific category (i.e.- capital expenditure or, revenue expenditure). The realization concept states: “A revenue or, expenditure […]

Accounting Concepts Definitions Part : 11 ( understandability in accounting )

Accounting Concepts Definitions Part : 11 Understandability in accounting The accounting method of recording and disclosing is better seasoned when they are understood and complete. Here, understanding doesn’t mean the understanding by the higher ups inside the entity but by those who are outside. Because, insiders can get the data modified to their liking by […]

Accounting Concepts Definitions Part : 10 (The comparability concept)

Accounting Concepts Definitions Part : 10 The comparability concept Accounting information is not all about just design, timeliness and organization. Rather this information needs a comprehensive quality which makes such data unique and that is comparability. If data can’t be compared then that can’t pass as good accounting data. Why? Because, accounting data is supposed […]

Accounting Concepts Definitions Part : 9 (completeness concept )

Accounting Concepts Definitions Part : 9 Completeness concept As accounting is not only a process but also the responsible option to supply information, it is important for accounting to use its wing perfectly and for that completeness is the utmost necessity. It is not a common thing which the word may suggest. Rather this concept accompanies […]

Accounting Concepts Definitions Part : 8 ( Prudence Concept )

Accounting Concepts Definitions Part : 8 Prudence Concept Accounting student and haven’t heard about prudence concept would be the most surprising thing to say. Why? The simple reason is simply because this is involved in every accounting decision, big or small. Now, before going to how this is accompanied we should take a look what […]

Accounting Concepts Definitions Part : 7 (Substance over form)

Accounting Concepts Definitions Part : 7 Substance over form As you have already learned about other forms and norms of recording an entity’s accounting information this is a necessary addition to that palette. Every reason is existent here for this to be added in your knowledge base. Now, what should you expect from this one? […]

Accounting Concepts Definitions Part : 6 ( Faithful representation concept )

Accounting Concepts Definitions Part : 6 Faithful Representation Financial reporting needs the accounts to show a picture that is presented in a form which is fitting to the guidelines and well documented. Being stated, this notion creates a wide range of confusion; because, the reporting should be identified in a way that will be believed […]

Accounting Concepts Definitions Part : 3 ( Money Measurement Concept ,Reliability Concept )

accounting Concepts

Money measurement concept and Reliability Concept 4. Money Measurement Concept Accounting concept stands on 4 basic ones and money measurement concept is one of them. money measurement concept state- “ Any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the […]