A limitation of the money measurement concept is that?
A. it results in inaccurate financial statements B. financial statement is not easily understood C. important non-monetary activities are not reported D. the reports are not comparable to that of other businesses Correct Answer: Option C – important non-monetary...
In the preparation of financial statements; full disclosure of minor events are ignored in line with
A. accrual concept B. money measurement concept C. business entity concept D. materiality concept Correct Answer: Option D – materiality concept
The original record containing the details of a transaction which serves as a basis for posting is?
A. general ledger B. source document C. subsidiary book D. trial balance Correct Answer: Option C – subsidiary book
A method of charging depreciation at a fixed percentage of the net book value is?
A. straight line method B. reducing balance method C. sum of the years’ digits method D. revaluation method Correct Answer: Option B – reducing balance method
The document which contains the internal regulations of a limited liability company is the
A. Certificate of Incorporation B. Prospectus C. Article of Association D. Memorandum of Association Correct Answer: Option C = Article of AssociationProducts
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