Question 1
Under NCEA Level 2 Accounting (AS 91174), which accounting concept requires that the financial affairs of the business entity must be kept completely separate from the personal financial affairs of the owner?
Correct Answer:
Accounting Entity concept
Question 2
Which accounting concept dictates that only items capable of being measured reliably in NZ dollar ($NZD) monetary terms can be recorded in the financial statements?
Correct Answer:
Monetary Measurement concept
Question 3
Dividing the continuous economic life of a business into equal artificial time intervals (such as 12-month financial years) to measure performance is known as which concept?
Correct Answer:
Periodicity concept
Question 4
A business purchased delivery equipment five years ago for $40,000. Even though its current market value is $15,000, its initial transaction record remains based on $40,000. Which concept justifies this?
Correct Answer:
Historical Cost concept
Question 5
The assumption that a business entity will continue operating for the foreseeable future and will not be forced to liquidate or cease trading is called:
Correct Answer:
Going Concern concept
Question 1
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Prepare with the NCEA Level 2 Accounting Practice Questions - NCEA Level 2 Accounting (NZQA Assessment Standards 91174, 91176, 91177) Exam practice quiz. This question bank includes 100 questions covering business, balance, financial, accounting, and cash. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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NCEA Level 2 Accounting Practice Questions - NCEA Level 2 Accounting (NZQA Assessment Standards 91174, 91176, 91177) Exam

This practice set contains 100 questions from the matching question bank and focuses on business, balance, financial, accounting, and cash. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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