Question

State the basic accounting concepts from following _________________.

• A. Revenue recognition Concept
• B. Matching Concept
• C. Consistency Concept
• D. All of the above

Answer 1

Answer: (D)

All of the above

Accounting is based on certain concepts and conventions. These are basic assumptions on which the accounting is based.

Revenue recognition Concept- This concept assumes that revenue is recognized only when there is sale or transfer of goods or assets.

Matching Concept- This concept is based on the accounting period concept and can be termed as accrual concept. It assumes that all transactions relating to income and expenditure must be recorded in the books of accounts based on the accounting period concept.

Consistency Concepts- Consistency is the basic assumption and it is assumed that the various policies/methods adopted by the concern while preparing the accounts are consistent from one period to another.