Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
|
|
|
1.
|
Accounting information prepared for management use must: a. | Contain detailed
information specified by the Companies Acts | b. | Be released
within a specified time-frame | c. | Be made available to shareholders | d. | None of the
above | | |
|
|
|
2.
|
The
overriding requirement of the Companies Act 1985 in relation to the published accounts of all
limited companies is that the accounts must: a. | Be presented in a specified
format | c. | Satisfy
specified disclosure requirements | b. | Give a true and fair view | d. | Be audited by an independent
accountant | | | | |
|
|
|
3.
|
Accounting standard FRS18 (Accounting Policies) states that two accounting concepts
play a pervasive role in the selection of accounting policies. These two concepts
are: a. | Going concern
and accruals | c. | Going concern
and prudence | b. | Prudence and consistency | d. | Accruals and consistency | | | | |
|
|
|
4.
|
The
prudence concept implies that: a. | Losses should not be recognised until uncertainties have been
removed | b. | Accountants should take a generally optimistic view when
preparing accounting information | c. | Profits should not be recognised until uncertainties have been
removed | d. | Neither profits nor losses should be recognised until
uncertainties have been removed | | |
|
|
|
5.
|
Which
of the following statements is true? a. | The assets shown in a balance sheet must be shown at their
historic cost | b. | The assets shown in a balance sheet may be shown at a mix of
historic and current values | c. | The assets shown in a balance sheet must be shown at their
current value | d. | The assets shown in a balance sheet must be shown at the lower
of historic cost and current value | | |
|