Accounting Principles and Concepts MCQs

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on March 26, 2023

Test your knowledge with this multiple choice question (MCQ) test on accounting principles and concepts. If you're unsure about any questions, you can read about this topic in detail in the explanation section.

1. The accounting cycle does not include:
2. One of the following is not a characteristic of accounting principles:
3. Which of the following is not a feature of the separate entity concept?
4. Going concern can be defined best as:
5. Matching concept does not include one of the following:
6. The accounting conventions do not include:
7. The realization concept does not include one of the following features:
8. According to consistency convention, accounting principles should be:
9. One of the following is not an example of the materiality concept:
10. The disclosure convention requires:
11. To assess audit risk more effectively, an auditor investigates all the different groups within an organization apart from:
12. Which of the following is of the least concern to an auditor regarding a client's internal control system?
13. When testing control procedures, the design can easily be tested using:
14. Which of the following is true?
15. Small audit firms provide the following services apart from:
16. Which of the following is not included in the category of cash?
17. Which of the following letters should be included in the letter of representation?
18. When should cash sales be recorded by companies to achieve control objectives?
19. Auditors conduct auditing in accordance with:
20. Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
21. During the accounting period, sales revenue is $25,000 and accounts receivable increases by $8,000. How much cash is received from customers for the period?
22. Which of the following ratios addresses a firm's financial leverage?
23. Balance sheets are based on which of the following formulas?
24. The Quick Ratio is also known as the:
25. Which of the following is a special case of an annuity, where the stream of cash flows continues forever?

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About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.