TEST BANK FOR Financial Statement Analysis, International Edition, 12th Edition
CHAPTER 1—INTRODUCTION TO FINANCIAL REPORTING
MULTIPLE CHOICE 1. Charging off equipment that cost less than $20 would be an example of the application of: a. going concern b. cost c. matching d. materiality e. realization
ANS: D 2. The going concern assumption: a. is applicable to all financial statements b. primarily involves periodic income measurement c. allows for the statements to be prepared under generally accepted accounting principles d. requires that accounting procedures be the same from period to period e. none of the answers are correct
ANS: C 1-1
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