1_ABC company issuing its financial reports on an annual basis.is an example of which basic assumption of accounting?
Select one:
A. None of the answers are correct
B. Economic entity assumption
C. Monetary unit assumption
D. Going concern assumption
E. Periodicity assumption
2_ insurance paid in advance is recorded as prepaid insurance. This is an example of which basic principle of accounting?
Select one:
A. Revenue recognition principle
B. Expense recognition principle
C. Cost principle
D. None of the answers are correct
E. Full disclosure principle
3_ Personal transactions of the firm are distinguished from business transactions this is an example of:
Select one:
A. None of the answers are correct
B. Economic entity assumption
C. Full disclosure principle
D. Expense recognition principle
E. Comparability characteristic
4_ Which of the following steps (in the correct order) use to establish international standards?
Select one:
A. Public hearing on proposed standard, research, standard issued
B. None of the answers are correct
C. Research, Topics identified, exposure draft
D. placed on the agenda, final standard issued, exposure draft
E. issues exposure draft, Research, discussion paper, placed on the agenda
5_ The main purpose of financial accounting is to provide a useful information to___:
Select one:
A. Employees
B. None of the answers are correct
C. Unions
D. Government
E. External users
