ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
7. The principle that assumes the reader of the financial statements is not interested in the liquidation values is:
| a. | conservatism. |
| b. | matching. |
| c. | time period. |
| d. | realization. |
| e. | None of the answers are correct. |
ANS: E PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
8. An accounting period that ends when operations are at a low ebb is:
| a. | a calendar year. |
| b. | a fiscal year. |
| c. | the natural business year. |
| d. | an operating year. |
| e. | None of the answers are correct. |
ANS: C PTS: 1 DIF: Difficulty: Easy
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Knowledge
NOT: Time: 1 min.
9. The accounting principle that assumes that inflation will not take place or will be immaterial is:
| a. | monetary unit. |
| b. | historical cost. |
| c. | realization. |
| d. | going concern. |
| e. | None of the answers are correct. |