Reliability means that:
A the information is a faithful representation of what it purports to be
B a company uses the same accounting principles from year to year:
C accounting information can e compared with that of other enterprises in the industry.
D the information has feedback value.
The going concern assumption assumes that the business
A will be liquidated in the near future.
B will be purchased by another business.
C is in a growth industry.
D will continue in operation long enough to carry out its existing objectives and commitment.
The going concern principle may be inapplicable when:
A the business is just startingup
B liquidation is assumed.
C fair market values are higher than costs.
D net realizable values cannot be obtained.
The principle that dictates that expense be matched with revenues in the period in which efforts are made to generate revenues is the:
A revenue recognition principle
B matching principle
C cost expiration principle
D cash flow principle
The cost principle has been criticized for being:
A unverifiable
B biased
C not determinable
D irrelevant
