TF KTTMDV

Q44. The financial statements of a company must always be prepared under the assumption that the business will continue operating.

• True
• FALS

Q45. Accrual accounting recognizes revenues only when cash is received.

• True
• FALS

Q46. The historical cost principle states that assets should be recorded at their fair market value.

• True
• FALS

Q47. Non-monetary items such as fixed assets must be reported at the exchange rate on the transaction date.

• True
• FALS

Q48. The prudence principle prevents overestimation of assets and underestimation of liabilities.

• True
• FALS

Q49. Indirect import means purchasing products directly from a foreign supplier.

• True
• FALS

Q50. A merchandising company earns revenue by selling services rather than goods.

• True
• FALS

Q51. The matching principle states that expenses should be recorded in the period they are incurred, regardless of when payment is made.

• True
• FALS

Q52. The consistency principle allows businesses to frequently change accounting methods to maximize profits.

• True
• FALS

Q53. Direct exports involve selling goods through an intermediary in a foreign country.

• True
• FALS