Accounting Multiple Choice Question – 16 September 2020

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

What is the going concern principle?

Select ONE answer:

  1. Accounting records are prepared assuming that the business will continue to operate in the foreseeable future.
  2. Income and expense should be accounted for in the same way they were accounted for in previous periods.
  3. Profit should not be anticipated and losses should be written off as soon as they are known.
  4. Revenue and costs should be recognised as they are earned or incurred, not when the money is received or paid.

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 1

  1. Correct
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

%d bloggers like this: