Accounting Concepts (Part 1)

What students will learn

• a. Cognitive Domain
• i. Define Accounting Concepts as the fundamental rules/assumptions of accounting.
• ii. Explain the Going Concern, Accrual, and Materiality concepts.
• iii. Distinguish between these three core concepts.
• b. Psychomotor Domain

Sample quiz questions

1. Which accounting concept assumes that a business will continue its operations for an indefinite period of time?

   • A. Accrual concept
   • B. Going concern concept
   • C. Consistency concept
   • D. Materiality concept

2. Under the accrual concept, when should revenue be recorded in the books of accounts?

   • A. When cash is physically received
   • B. When the business owner approves the sale
   • C. When the transaction occurs, regardless of cash flow
   • D. At the end of the financial year

Answers and explanations come with the full quiz when you sign up.