Exam 4: Accounting Principles, Concepts and Policies

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Which of the following is not an estimation technique?

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Which of the following is not an accounting concept?

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A trader bought goods for resale on credit costing £1,000 in July and paid for them in August. These were sold on credit for £1,500 in September and the money received in October. Applying the accruals concept and matching principle:

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At the end of the accounting period a company makes a charge in its financial statements for oil delivered, not invoiced but used. Then this adjustment is in accordance with the following concept:

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Which of the following is not an objective against which an entity should judge the appropriateness of its accounting policies?

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The accounting concept which tends to understate values when inflation is high is:

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Changing the valuation of inventory from LIFO to FIFO is an example of:

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At the end of the accounting period the value of the inventory not sold is removed from that years cost of sales and carried into the next year as a current asset. This adjustment is in accordance with the following concept:

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Which of the following is not an accounting concept?

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Inventory not sold in one period, should be carried forward to the next period and released to the income statement in the next period if the goods are sold.

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Substance over form was first introduced in the UK by the following accounting standard:

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The historical cost convention

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Which of the following is not an element as defined in the Framework?

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Sales revenue should be recognised when goods and services have been supplied; costs are incurred when goods and services have been received. The accounting concept which governs the above is the:

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Which of the following is not a measurement basis as stipulated in the framework document?

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At the end of the accounting period the value of the entity's building rises by £10,000, however, the £10,000 is not included in the income for the period. This 'non' adjustment is in accordance with the following concept:

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