1. Operating activities are concerned with: A. borrowing or lending. B. the sale or disposal of non-current assets. C. the trading and/or service operations of the business. D. none of the above.

2. In practice, under accrual accounting, most income is recognised: A. when the goods are delivered. B. when the cash is received. C. when the goods are produced. D. when an order is received.

3. A common aspect of questionable figures in financial reports is: A. overstating figures for income and assets. B. overstating figures for income and understating figures for assets. C. understating figures for income and expenses. D. overstating figures for expenses and liabilities.