Reference no: EM13754871

1. The assumption that deals with when to recognize the costs associated with the revenue ecognized is

• matching.
• going concern.
• consistency.
• materiality.

2. The income statement summarizes

• the profit for a specific period of time.
• the annual profit.
• the losses of the firm.
• the profit over six months.

3. Which of the following is a false statement, as it relates to analysis?

• If merchandise with a 20% markup is sold on credit, it would take ten successful sales of the same amount to make up for one sale not collected.
• Equity capital provides creditors with a cushion against loss.
• There is a difference between the objectives sought by short-term grantors of credit and those sought by long-term grantors of credit.
• The financial structure of the entity is of interest to creditors.

4. Who is responsible for the preparation and the integrity of financial statements?

• Cost accountant
• Auditor
• Management
• Public accountant

5. Which of the following is not a type of audit opinion?

• Unqualified opinion
• Qualified opinion
• Adverse opinion
• Clean opinion