1. Accounting principles are the essential guidelines under which

................. prepare their financial

statements.

 

 

 

•  

  A. business

• B. banks

• C. businesses

• D. auditors

2. These principles guide the methods and decisions for a business over a short and .................

term.

• A. big

• B. long

• C. small

• D. high

3. For both internal and .................reporting purposes, it is important to understand the concepts presented below because they serve as a guideline to the analysis of financial reporting issues.

 

•  

  A. external

• B. exported

• C. imported

• D. extra

In order to make this language to convey the same meaning to all people, it is necessary that it should be ................. on certain uniform scientifically laid down standards.

 

• A.base                                    

•      B.based                      

•    C. basic                                                       

•   D. basically

The matching concept does not mean that revenues and ................. for a period are equal.

 

• A.income                    

• B.interest                  

•    C.capital                                         

•   D. expenses

A fair presentation of the results of a firm’s operations during a period of time requires that all expenses incurred in generating that period’s revenues be ................. from the revenues earned.

• A. deducted

• B. conducted

• C. managed

• D. added

7.  Pending lawsuits, ................. transactions, or other conditions may have imminent and significant effects on the company's financial status.

• A. complete                

   

• B. completed             

•   C. incomplete                                          

• D. uncomplete

Footnotes supplement financial statements ................. this information and to describe the policies

 

the company uses to record and report business transactions.

 

• A. convey                    

• B. conveyed               

•   C. conveying                                          

• D. to convey

The financial statement user relies on these concepts and principles related to the accounting

 

period when making................. and informed decisions about an entity’s financial position and

results of operations.

 

 

• A. judge

• B. judgements

• C. judgement

• D. judged

10. Accounting principles are the essential guidelines .................which businesses prepare their financial statements.

 

 

 

• A. in

• B. of

• C. under

• D. for