1. Compliance with AASB accounting standards is:

a. Voluntary

b. Legally binding

c. Enforced by the professional bodies

d. Enforced by the industry.

2. The Conceptual Framework of Accounting:

a. provides guidelines for preparing general purpose financial statements.

b. prescribes the objective of special purpose financial statements.

c. provides guidelines to meet the information needs of sophisticated users.

d. provides prescribed format for preparing financial statements.

3.Which of the following statements about income is not true?

a. Income arises when there is control over the increase in economic benefits

b. Income includes cash collection from owners.

c. Income can be in the form of decreases of liabilities.

d. Income results in increases in economic benefits.

4. Which of the following statements about the going concern assumption is true?

a. It justifies the use of historical costs when measuring non-current assets.

b. It allows Prepaid Expenses to be recognised as an asset.

c. It requires the systematic allocation of depreciation over an assets useful life.

d. All of the above

5. The value of which financial statement element must be derived from other statement items?

a. Assets

b. Liabilities

c. Equity.

d. Expenses.

6. Which of the following statements is not correct?

a. Equity is defined as the residual interest in the assets of the entity after deducting all its expenses.

b. Equity is increased by profit and owner contributions.

c. Equity is decreased by an entitys expenses.

d. Equity is to be shown as a separate line item in the statement of financial position.

only abcd answer no need explain