Reference no: EM132966278

Problem 1: The concept of the accounting entity is applicable

A) only to business organizations.

B) whenever accounting is involved.

C) only to the legal aspects of business organizations.

D) only to the economic aspects of business organizations.

Problem 2: This principle requires relevant information to form part of financial statements for decision making purposes

A) materiality

B) adequate disclosure

C) objectivity

D) accounting entity

Problem 3: Proponents of historical costs maintain that in comparison with all other valuation alternatives for general purpose financial reporting statements prepared using historical costs are more

A) relevant.

B) indicative of the entity's purchasing power.

C) objective.

D) conservative.