Reference no: EM132712893
Problem 1: The business or economic entity concept is applicable to
a) Sole proprietorship form of business
b) Partnership form of business
c) Corporate form of business
d) all of the above
Problem 2: Which of the following states that the dollar is not the only currency for trading
a) Going concern concept
b) Monetary unit assumption
c) Stable dollar value assumption
d) Matching principle
Problem 3: Which one of the following states that the life of a business can be divided into equal time periods?
a) Time period assumption
b) Revenue recognition principle
c) Economic entity concept
d) Accrual concept
Problem 4: Sony, a multinational electronics corporation, rounds dollar amounts in its financial statements to the nearest $1,000. Which accounting principle/concept justifies this action?
a) Realization concept
b) Economic entity concept
c) Materiality concept
d) historical concept
Problem 5: The auditor noticed that the financial statements of Meta Company were missing some footnotes important for users for decision making. This action of the management is a violation of
a) Materiality concept
b) Going concern concept
c) Economic entity concept
d) Full disclosure concept