1. The assumption that deals with when to recognize the costs associated with the revenue ecognized is
- matching.
- going concern.
- consistency.
- materiality.
2. The income statement summarizes
- the profit for a specific period of time.
- the annual profit.
- the losses of the firm.
- the profit over six months.
3. Which of the following is a false statement, as it relates to analysis?
- If merchandise with a 20% markup is sold on credit, it would take ten successful sales of the same amount to make up for one sale not collected.
- Equity capital provides creditors with a cushion against loss.
- There is a difference between the objectives sought by short-term grantors of credit and those sought by long-term grantors of credit.
- The financial structure of the entity is of interest to creditors.
4. Who is responsible for the preparation and the integrity of financial statements?
- Cost accountant
- Auditor
- Management
- Public accountant
5. Which of the following is not a type of audit opinion?
- Unqualified opinion
- Qualified opinion
- Adverse opinion
- Clean opinion