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Multiple ChoiceIdentify the choice that best completes the statement or answers the question.
1. Which principle specifies that cost or expenses should be recorded at the same time asthe revenue to which they correspond?a. Prudence principleb. Matching principlec. Going concern principled. Consistency principle
ANSWER: BEasy
POINTS: 0 / 1REF: page 156
2. Which measurement basis is most commonly used by enterprises to prepare the financialstatements because it is the one that requires the fewest hypotheses?a. Historical costb. Realizable valuec. Replacement costd. Present value
ANSWER: AEasy
POINTS: 0 / 1REF: page 169
3. A business owes a supplier 500 CU and simultaneously has a claim on that very supplierfor the same amount. What should be reported in the balance sheet?a. Nothing.b. Only a balance of 500 CU on the liability side (corresponding to the debt to the
supplier).c. Only a balance of 500 CU on the asset side (corresponding to the claim on the
supplier).d. A balance of 500 CU on the asset side and a balance of 500 on the liability side.
ANSWER: DEasy
POINTS: 0 / 1REF: page 160
4. Transactions and other events are accounted for and presented in accordance with:a. Their legal form.b. Their materiality.c. Their substance and economic reality.d. Their tax impact.
ANSWER: C
Name: Score: 0 / 10 points (0%)
Chapter 5 Accounting principles and endofperiod adjustments
EasyPOINTS: 0 / 1REF: page 160
5. Which of the following statements is not consistent with the fact that valuation must bemade on a prudent basis?a. Only profits concretely and definitively earned on the balance sheet date may be
included.b. If necessary, the creation of excessive provisions or the deliberate overstatement
of assets is allowed.c. Account must be taken of all foreseeable liabilities and potential losses arising
in the course of the financial year concerned or of a previous one, even if suchliabilities or losses become apparent only between the date of the balance sheetand the date on which it is drawn up.
d. Account must be taken of all depreciation whether the result of the financialyear is a loss or a profit.
ANSWER: BEasy
POINTS: 0 / 1REF: page 161
6. When will the endofperiod entries be carried out?a. Every time the books are closedb. Every time an entry is recordedc. When the business is liquidatedd. Every time a major event is recognized
ANSWER: AModerate
POINTS: 0 / 1REF: page 164
7. When do revenues affect net income?a. In the period during which they are earnedb. In the period in which their cash equivalent is collectedc. Both a and bd. Neither a nor b
ANSWER: AEasy
POINTS: 0 / 1REF: page 165
8. Interest revenue on a loan granted to an employee becomes due on the anniversary ofthe loan, 31 March. The annual interest on the loan is 120 CU. How much is recorded inthe income statement as of 31 December?a. 0b. 30c. 60d. 90
ANSWER: DEasy
POINTS: 0 / 1REF: pages 165, 166
REF: pages 165, 166
9. What effect does the endofperiod entry recognizing periodic depreciation have on the
basic accounting equation?a. Decrease in assets, decrease in liabilitiesb. Decrease in assets, increase in shareholders’ equityc. Decrease in assets, increase in liabilitiesd. Decrease in assets, decrease in shareholders’ equity
ANSWER: DModerate
POINTS: 0 / 1REF: page 168
10. The opening balance sheet for each financial year must correspond to the closingbalance sheet for the preceding financial year.a. Trueb. False
ANSWER: AEasy
POINTS: 0 / 1REF: page 178