Accounting Multiple Choice Question – 14 May 2019

Which of the following is one of the ‘fundamental accounting concepts’ referred to in SSAP 2?

Select ONE answer:

1. The materiality concept.
2. The business entity concept.
3. The going concern concept.
4. The money measurement concept.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Although the materiality concept is a well-recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.
2. Although the business entity concept is a well—recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.
3. Correct
4. Although the money measurement concept is a well-recognised accounting concept, it is not one of the ‘fundamental’ accounting concepts referred to in SSAP2.

 

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