Practice Test | Kullabs.com
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  • What is the full form of GAAP?

    Generally Accepted Accounting Principles
    Generally Accepted Accountancy Projects
    Governmentally Ascertained Accounting Principles
    Generally Asserted Arbitrary Principles
  • ______ states that the business and its owners are two separate and distinct entities.

    Money measurement concept
    Accounting period concept
    Business entity concept
    Realisation concept
  • ______ states that only those transaction which can be measured and expressed in term of money are recorded in the books of accounts.

    Accounting period concept
    Realisation concept
    Money measurement concept
    Matching concept
  • ______ implies that the total life of the business is divided into different imaginary time interval and such time interval contain 12 months for the purpose of recording and reporting the financial performance to the concerned parties.

    Dual concept
    Accounting period concept
    Business entity concept
    Money measurement concept
  • ______ states that revenue is assumed to be earned when goods are sold or services rendered to the customers either on cash or credit.

    Realisation concept
    Accounting period concept
    Business entity concept
    Cost concept
  • ______ implies that when the fixed assets are purchased they are to be recorded in the books of accounts at their cost price.

    Business entity concept
    Money measurement concept
    Cost concept
    Matching concept
  • ______ implies that the revenue earned has to be compared with the expenses incurred in the same period to determine the true profit or loss of the business.

    Matching concept
    Dual concept
    Accounting period concept
    Business entity concept
  • ______ states that every business transaction has two-fold effects.

    Dual concept
    Business entity concept
    Accounting period concept
    Money measurement concept
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