Reference no: EM133002167

Problem 1: Which of the following is NOT a basic assumption underlying financial accounting?

A. Historical cost assumption
b. Economic entity assumption
c. Periodicity assumption
d. Going concern assumption

Problem 2: It is the amount of cash or cash equivalent that would have to be paid I the same or an equivalent asset was acquired currently

a. Historical cost
b. Current cost
c. Present value
d. Realizable value

Problem 3: Which of the following is an application of the cause-and-effect principle of recognizing expense?

a. Performance bonus o sales managers
b. Loss from fire
c. supplies expense
d. Amortization of intangibles

Problem 4: Which statement is NOT true about derecognition;

a. Derecognition is the removal of a recognized income or expense from the income statement.
b. Derecognition for an asset normally occurs when the entity loses control of the recognized asset.
c. derecognition for a liability normally occurs when the entity no longer has a present obligation for the recognized liability.
d. Derecognition is the removal of a recognized asset or liability from the statement of financial position.