Question

General ideas which convey certain meanings are known as ____________ .

• A. Standards
• B. Concepts
• C. Ethics
• D. All of the above

Answer 1

Answer: (B)

Concepts

The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting and are broad working rules for all accounting activities and developed by the accounting profession. The important concepts are:

a. Business entity concept

b. Revenue recognition (Realisation) concept

c. Money measurement concept

d. Matching concept

e. Going concern concept

f. Full disclosure concept

g. Accounting period concept

h. Consistent concept

i. Cost concept

j. Conservatism (Prudence) concept

k. Dual aspect (or duality) concept

l. Materiality concept

m. Objectivity concept