1. According to principle of accounting, the revenues and the related expenses are matched in the

same period to which they relate.

A. Matching

B. Realization

C. Prudence

D. Consistency

2. Which concept states that the financial statements of an entity of one period should be comparable

with that of other periods as well as with the financial statements of other entities in the same

industry.

A. Relevance

B. Reliability

C. Comparability

D. Understandability

3. What is the main function of book-keeping?

A communicating information

B interpreting information

C recording information

D summarizing information

4. Which components of a statement of financial position do descriptions 1, 2 and 3 relate to?

1 finance and other resources that have been provided by the owner

2 money owed for goods supplied, unpaid expenses and loans made to the business

3 property owned by the business, amounts owed by customers, unsold goods and

money in the bank




A

assets

capital

liabilities

B

assets

liabilities

capital

C

capital

assets

liabilities

D

capital

liabilities

asse​