Accounting Concepts and Conventions
GCE Financial Accounting

(a) Explain the meaning of 'Accounting Concepts and Conventions' as used in financial accounting. (3 marks) (b) State and explain FIVE accounting concepts/conventions, giving ONE practical example of…

(a) The following situations arose in the preparation of the financial statements of Adaeze Enterprises for the year ended 31 December 2023: (i) The owner, Mr. Adaeze, included his personal car maint…

The convention that requires accountants to choose accounting methods that are least likely to overstate assets and income is known as the

A trader who has been using the FIFO method of stock valuation suddenly switches to the AVCO method without disclosure. This action violates the

At 31 December 2023, Chukwuemeka's business had the following: total assets ₦850,000; capital ₦500,000; trade payables ₦120,000; bank overdraft ₦80,000. Which accounting concept is directly applied wh…

Which accounting concept requires that a business should be treated as a separate entity from its owner?

Ngozi Enterprises bought a stapler for ₦3,500 and debited it to office equipment account. The accountant later wrote it off as an expense in the same year, citing an accounting convention. The convent…

Bello & Sons purchased land in 2010 for ₦5,000,000. By 2023, the market value of the land had risen to ₦18,000,000. The land is still recorded at ₦5,000,000 in the books. Which accounting concept just…

Adaeze Trading Company has current assets of ₦960,000, current liabilities of ₦640,000, and a long-term loan of ₦400,000. The accountant prepares the financial statements on the assumption that the bu…

Which of the following best describes the 'accrual concept' in financial accounting?

Alhaji Musa purchased a motor vehicle for ₦2,400,000 which has a useful life of 4 years with no residual value. If the straight-line method of depreciation is applied, what is the net book value of th…