True, False

1. _____ The going concern principle is concerned with the timing of the recognition of the transactions in the account.

• True
• False

2. _____ According to the prudence principle, profit and assets are overstated and expenses and liabilities are not realistically valued.

• True
• False

3. _____ According to the matching principle, when preparing accounts, one must assume that the enterprise will still be viable in the year to come.

• True
• False

4. _____ According to consistency principle, accounts should be produced using the same principles from one year to the next.

• True
• False

5. _____ GAAP is an accounting standard which is developed and in use in the Europe.

• True
• False

6. _____ IFRS is an accounting standard which is developed and in use in the Europe.

• True
• False

7. _____ Government is the unique user of the information generated by financial accounting.

• True
• False

8. _____ Trainee accountants are people employed by an outside firm of accountants and hired by a company to inspect its accounts.

• True
• False

9. _____ External auditors are the people who record a company’s transactions

• True
• False

10. _____ Back-office manager is a person in charge of the staff responsible for giving administrative support to the financial department.

• True
• False