Exam 4: Accounting Principles, Concepts and Policies

Which of the following is not an estimation technique?

Which of the following is not an accounting concept?

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:

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:

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

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

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

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:

Which of the following is not an accounting concept?

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.

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

The historical cost convention

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

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:

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

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: