Overview of GAAP Principles (Grade 10 NSC Matric Accounting): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does GAAP stand for in accounting?
What does GAAP stand for in accounting?
Generally Accepted Accounting Principles
Under historical cost, at what value are assets recorded in accounting books?
Under historical cost, at what value are assets recorded in accounting books?
Original purchase price
Land bought for 650,000. What value appears in financial statements?
Land bought for 650,000. What value appears in financial statements?
$500,000
What should accountants do when uncertain about values under the prudence principle?
What should accountants do when uncertain about values under the prudence principle?
Choose value least favorable to equity
A $10,000 debt is unlikely to be recovered. What is the prudent approach?
A $10,000 debt is unlikely to be recovered. What is the prudent approach?
Write off the debt immediately
What does the materiality principle determine in financial statements?
What does the materiality principle determine in financial statements?
What appears separately vs grouped
What does the business entity rule establish?
What does the business entity rule establish?
Business is separate from owner
Owner inherits $500,000. Where should this be deposited according to business entity rule?
Owner inherits $500,000. Where should this be deposited according to business entity rule?
Owner's personal bank account
Under going concern, how are assets valued in financial statements?
Under going concern, how are assets valued in financial statements?
At cost or book value
Rent is 55,000 paid this year. What expense should statements show?
Rent is 55,000 paid this year. What expense should statements show?
$60,000 (12 months)