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5-question demo · Gujarat GSSSB Sub Accountant - Accountancy

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Question 1 of 5
Which of the following is NOT included in the matching concept? A. Depreciation convention B. Conservatism convention C. Consistency convention D. Accrual convention
A Depreciation convention
B Conservatism convention
C Consistency convention
D Accrual convention
Why: The matching concept requires that expenses be matched with the revenues they help generate in the same accounting period. It primarily involves accrual basis, depreciation for asset usage, and consistency in methods. Conservatism (prudence) is a separate convention that anticipates losses but not profits, not directly part of matching[2]. Option B matches this.
Question 2 of 5
According to consistency convention, accounting principles should be: A. Consistent B. Variable C. Flexible D. Factual
A Consistent
B Variable
C Flexible
D Factual
Why: The consistency convention requires that accounting principles and methods be applied uniformly from one accounting period to another to ensure comparability of financial statements over time. Changing methods arbitrarily would distort trends[2][3]. Option A is correct.
Question 3 of 5
Prudence in accounting requires: A. Recording all profits immediately B. Anticipating all losses but not profits C. Ignoring expenses until paid D. Overstating assets for investor confidence
A Recording all profits immediately
B Anticipating all losses but not profits
C Ignoring expenses until paid
D Overstating assets for investor confidence
Why: The prudence (conservatism) convention dictates that accountants should anticipate no profits but anticipate all possible losses, ensuring financial statements are not overly optimistic. For example, provisions for bad debts are created even before they are confirmed[8]. Option B is correct.
Question 4 of 5
Creating an allowance for doubtful debts is an example of which concept? A. Accrual B. Consistency C. Prudence D. Matching
A Accrual
B Consistency
C Prudence
D Matching
Why: Allowance for doubtful debts anticipates potential losses from uncollectible receivables, embodying the prudence convention which requires provisioning for foreseeable losses while not recognizing uncertain gains[8]. Option C is correct.
Question 5 of 5
Write short notes on Accounting Concepts and Conventions. (8 marks)
Why: This structured answer covers definitions, key points with examples, meeting 50-80 word minimum for short note (actual ~250 words for depth). Based on standard accounting principles from sources[1][3].