Financial Management for Branches | June 23, 2023

Employee Number

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Last Name

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1. Under entity concept, personal accounts of owners should be not kept separate from profits and expenses of the company

• True

• False

2. Historical means that all properties and services acquired by the business must be recorded at its fair market value

• True

• False

3. The dual aspect concept assumes that making a record of transactions in the books of accounts has a dual outcome or effect

• True

• False

4. The conservatism principle states that given two options in the valuation of business transactions, the amount recorded should be the higher value rather than the lower value

• True

• False

5. Accounting ensures consistency in the accounting procedures used by the business from one accounting period to the next

• True

• False

6. Employees are not users of the financial accounting information

• True

• False

7. Accrual principle requires the recording of the revenue when collected and expenses when paid

• True

• False

8. Going concern concept assumes that the company will continue to operate for a fairly long period

• True

• False