Post Utme Christopher University 2019 Commerce Question 5

Practice objective / multiple choice question 5 from the 2019 Post Utme Christopher University Commerce examination.

Post Utme Christopher University 2019 Commerce Objective / Multiple Choice

Question 5 POST_UTME_CHRISTOPHER_UNIVERSITY • 2019 • COMMERCE • objective

A company's financial statements, including its balance sheet and income statement, are prepared in accordance with Generally Accepted Accounting Principles (GAAP). Which of the following is a key principle of GAAP?

Answer Options

A. The going concern assumption, which assumes that the company will continue to operate for the foreseeable future.

B. The historical cost principle, which requires assets and liabilities to be recorded at their historical cost.

Correct Answer C. The matching principle, which requires expenses to be matched with the revenues they help to generate.

D. The materiality principle, which requires financial information to be disclosed if it is material to the company's financial position or performance.

Correct Answer

Correct Option:

The matching principle, which requires expenses to be matched with the revenues they help to generate.

About This Question

This is Post Utme Christopher University 2019 Commerce Question 5. It is one of the objective questions from the 2019 Post Utme Christopher University Commerce examination.

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