Accounting Concepts

FA – Nov 2020 – L1 – SB – Q2 -Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Explain accounting concepts, provide examples, and list users of financial statements.

Question

a. Explain the term ‘accounting concepts’. (2 Marks)

b. With particular reference to the accounting treatments, explain the following accounting concepts:
i. Entity (2 Marks)
ii. Going concern (2 Marks)
iii. Accrual (2 Marks)
iv. Materiality and aggregation (2 Marks)
v. Consistency (2 Marks)

c. In accordance with IAS 1 – Presentation of Financial Statements, highlight six qualitative characteristics of general-purpose financial statements. (4 Marks)

d. Financial statements provide information to users, and each user’s information requirement is not always the same.

Required:
Using the table below and the example provided, list four users of financial statements and their information needs.

S/N	Users	Information Needs
1	Employees	Wage negotiation and determination of job security
2
3
4

(Total: 20 Marks)

Answer

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Tags: Accounting Concepts, Financial Statements, IAS 1, Materiality, Users of financial statements
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts

Identifies the accounting convention that suggests using a valuation method that understates rather than overstates results.

Question

Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates results?
A. Conservatism
B. Historical
C. Monetary
D. Cost
E. Substance over form

Answer

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Tags: Accounting Concepts, Conservatism
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2020

FA – Nov 2014 – L1 – SB – Q1a – Accounting Concepts

Writing short notes on five fundamental accounting concepts.

Question

A reliable financial statement is the product of properly maintained financial records and adequate use of necessary accounting concepts.

Write short notes on the following accounting concepts:

i. Business entity (2 Marks)
ii. Going concern (2 Marks)
iii. Matching (2 Marks)
iv. Consistency (2 Marks)
v. Materiality and aggregation (2 Marks)
(Total 10 Marks)

Answer

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Tags: Accounting Concepts, Conceptual Framework, Financial Reporting
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2014

FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts

Identifying the accounting concept that governs recognizing transactions in the period they occur.

Question

Accounting for the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the period in which those effects occur, even if the resulting cash receipts and payments occur in a different period, is governed by which of the following accounting concepts?

A. Cash basis
B. Accrual
C. Matching
D. Consistency
E. Going concern

Answer

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Tags: Accounting Concepts, Accrual Accounting, Financial Reporting
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2014

FA – Nov 2019 – L1 – SA – Q4 – Accounting Concepts

Identify which change does not affect accounting policy under IAS-8.

Question

In accordance with the requirements of IAS-8 – Accounting Policies, Estimates, and Errors, which of the following changes in method does not give rise to changes in accounting policy?

Answer

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Tags: Accounting Policies, Depreciation, IAS 8
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2019

FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-

Identify the fundamental accounting assumptions for preparing financial statements.

Question

Which of the following combinations of accounting concepts are the fundamental assumptions in the preparation of financial statements?

Answer

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Tags: Accounting Concepts, Fundamental Assumptions
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2019

FA – MAY 2015 – L1 – SA – Q14 – Accounting Concepts

Identify which option is not an accounting concept.

Question

Which of the following is NOT an accounting concept?
A. Information
B. Historical cost
C. Consistency
D. Accrual
E. Going concern

Answer

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Tags: Accounting Concepts, Consistency, Historical Cost
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2015

FA – May 2024 – L1 – SA – Q1 – Accounting Concepts

Identifies the accounting concept related to prepaid and accrued expenses adjustments.

Question

In the process of drawing up financial statements, adjustments are made for prepaid expenses and accrued expenses in order to comply with which fundamental accounting concept?

A. Matching
B. Prudency
C. Aggregation
D. Accrual
E. Consistency

Answer

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Tags: Accounting principles, Accrual Accounting, Matching Concept
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2024

FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Identifying correct statements related to accounting concepts

Question

Which of the following statements is/are correct?
(i) Materiality means that only items having a physical existence may be recognised as assets.
(ii) The substance over form convention means that the legal form of a transaction must always be shown in financial statements even if this differs from the commercial effect.
(iii) The money measurement concept means that only an item capable of being measured in monetary terms can be recognised in financial statements.
A. I
B. I, II and III
C. I and II
D. II and III
E. III

Answer

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Tags: Accounting Concepts, Materiality, Money Measurement, Substance Over Form
Level: Level 1

Topic: Accounting Concepts
Series: MAR/JULY 2020

FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Accounting concept that gives special treatment to significant items

Question

Which of the following concepts requires the accountant to give special accounting treatment to items of significant value?
A. Accrual
B. Going concern
C. Materiality
D. Entity
E. Dual aspect

Answer

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Tags: Accounting Concepts, Accrual, Going Concern, Materiality
Level: Level 1

Topic: Accounting Concepts
Series: MAR/JULY 2020

FA – Nov 2020 – L1 – SB – Q2 -Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Explain accounting concepts, provide examples, and list users of financial statements.

Question

a. Explain the term ‘accounting concepts’. (2 Marks)

c. In accordance with IAS 1 – Presentation of Financial Statements, highlight six qualitative characteristics of general-purpose financial statements. (4 Marks)

d. Financial statements provide information to users, and each user’s information requirement is not always the same.

Required:
Using the table below and the example provided, list four users of financial statements and their information needs.

S/N	Users	Information Needs
1	Employees	Wage negotiation and determination of job security
2
3
4

(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Financial Statements, IAS 1, Materiality, Users of financial statements
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2020

FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts

Identifies the accounting convention that suggests using a valuation method that understates rather than overstates results.

Question

Answer

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Tags: Accounting Concepts, Conservatism
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2020

FA – Nov 2014 – L1 – SB – Q1a – Accounting Concepts

Writing short notes on five fundamental accounting concepts.

Question

A reliable financial statement is the product of properly maintained financial records and adequate use of necessary accounting concepts.

Write short notes on the following accounting concepts:

i. Business entity (2 Marks)
ii. Going concern (2 Marks)
iii. Matching (2 Marks)
iv. Consistency (2 Marks)
v. Materiality and aggregation (2 Marks)
(Total 10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Conceptual Framework, Financial Reporting
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2014

FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts

Identifying the accounting concept that governs recognizing transactions in the period they occur.

Question

A. Cash basis
B. Accrual
C. Matching
D. Consistency
E. Going concern

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual Accounting, Financial Reporting
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2014

FA – Nov 2019 – L1 – SA – Q4 – Accounting Concepts

Identify which change does not affect accounting policy under IAS-8.

Question

In accordance with the requirements of IAS-8 – Accounting Policies, Estimates, and Errors, which of the following changes in method does not give rise to changes in accounting policy?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Depreciation, IAS 8
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2019

FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-

Identify the fundamental accounting assumptions for preparing financial statements.

Question

Which of the following combinations of accounting concepts are the fundamental assumptions in the preparation of financial statements?

Answer

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Tags: Accounting Concepts, Fundamental Assumptions
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2019

FA – MAY 2015 – L1 – SA – Q14 – Accounting Concepts

Identify which option is not an accounting concept.

Question

Which of the following is NOT an accounting concept?
A. Information
B. Historical cost
C. Consistency
D. Accrual
E. Going concern

Answer

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Tags: Accounting Concepts, Consistency, Historical Cost
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2015

FA – May 2024 – L1 – SA – Q1 – Accounting Concepts

Identifies the accounting concept related to prepaid and accrued expenses adjustments.

Question

In the process of drawing up financial statements, adjustments are made for prepaid expenses and accrued expenses in order to comply with which fundamental accounting concept?

A. Matching
B. Prudency
C. Aggregation
D. Accrual
E. Consistency

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Accrual Accounting, Matching Concept
Level: Level 1

Topic: Accounting Concepts
Series: MAY 2024

FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Identifying correct statements related to accounting concepts

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Materiality, Money Measurement, Substance Over Form
Level: Level 1

Topic: Accounting Concepts
Series: MAR/JULY 2020

FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Accounting concept that gives special treatment to significant items

Question

Which of the following concepts requires the accountant to give special accounting treatment to items of significant value?
A. Accrual
B. Going concern
C. Materiality
D. Entity
E. Dual aspect

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Concepts, Accrual, Going Concern, Materiality
Level: Level 1

Topic: Accounting Concepts
Series: MAR/JULY 2020

Topic: Accounting Concepts

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FA – Nov 2020 – L1 – SB – Q2 -Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Explain accounting concepts, provide examples, and list users of financial statements.

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FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts

Identifies the accounting convention that suggests using a valuation method that understates rather than overstates results.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts"

FA – Nov 2014 – L1 – SB – Q1a – Accounting Concepts

Writing short notes on five fundamental accounting concepts.

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FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts

Identifying the accounting concept that governs recognizing transactions in the period they occur.

You're reporting an error for "FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts"

FA – Nov 2019 – L1 – SA – Q4 – Accounting Concepts

Identify which change does not affect accounting policy under IAS-8.

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FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-

Identify the fundamental accounting assumptions for preparing financial statements.

You're reporting an error for "FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-"

FA – MAY 2015 – L1 – SA – Q14 – Accounting Concepts

Identify which option is not an accounting concept.

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FA – May 2024 – L1 – SA – Q1 – Accounting Concepts

Identifies the accounting concept related to prepaid and accrued expenses adjustments.

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FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Identifying correct statements related to accounting concepts

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FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Accounting concept that gives special treatment to significant items

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)"

FA – Nov 2020 – L1 – SB – Q2 -Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Explain accounting concepts, provide examples, and list users of financial statements.

You're reporting an error for "FA – Nov 2020 – L1 – SB – Q2 -Accounting Concepts (e.g., Going Concern, Accruals, Materiality)"

FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts

Identifies the accounting convention that suggests using a valuation method that understates rather than overstates results.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q11 – Accounting Concepts"

FA – Nov 2014 – L1 – SB – Q1a – Accounting Concepts

Writing short notes on five fundamental accounting concepts.

You're reporting an error for "FA – Nov 2014 – L1 – SB – Q1a – Accounting Concepts"

FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts

Identifying the accounting concept that governs recognizing transactions in the period they occur.

You're reporting an error for "FA – Nov 2014 – L1 – SA – Q18 – Accounting Concepts"

FA – Nov 2019 – L1 – SA – Q4 – Accounting Concepts

Identify which change does not affect accounting policy under IAS-8.

You're reporting an error for "FA – Nov 2019 – L1 – SA – Q4 – Accounting Concepts"

FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-

Identify the fundamental accounting assumptions for preparing financial statements.

You're reporting an error for "FA – Nov 2019 – L1 – SA – Q3 Accounting Concepts-"

FA – MAY 2015 – L1 – SA – Q14 – Accounting Concepts

Identify which option is not an accounting concept.

You're reporting an error for "FA – MAY 2015 – L1 – SA – Q14 – Accounting Concepts"

FA – May 2024 – L1 – SA – Q1 – Accounting Concepts

Identifies the accounting concept related to prepaid and accrued expenses adjustments.

You're reporting an error for "FA – May 2024 – L1 – SA – Q1 – Accounting Concepts"

FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Identifying correct statements related to accounting concepts

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q12 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)"

FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)

Accounting concept that gives special treatment to significant items

You're reporting an error for "FA – Mar/July 2020 – L1 – SA – Q7 – Accounting Concepts (e.g., Going Concern, Accruals, Materiality)"

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