ACCOUNTING for Everyone

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AFE Quiz 1: Accounting Principles and Concepts

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  1. Which principle states that business transactions should be recorded separately from the personal transactions of the owner?




  2. Which principle requires expenses to be matched with related revenues in the same period?




  3. Which concept assumes that a business will continue to operate indefinitely?




  4. Which principle requires that assets be recorded at their original cost?




  5. Which principle states that all relevant information should be disclosed in the financial statements?




  6. Which concept assumes that only transactions measurable in money are recorded?




  7. Which principle requires a company to use the same accounting methods from period to period?




  8. Which concept divides the life of a business into artificial time periods for reporting purposes?




  9. Which principle states that accountants should exercise caution in the face of uncertainty?




  10. Which principle allows insignificant items to be disregarded if their omission does not affect users’ decisions?




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