1. Revenue and costs should be recognized in the financial statements when earned and not incurred but not when cash is received or paid. This is the definition of ... A. Going concern concept B. Accrual concept C. Materiality concept D. Realization concept 2. Provision for doubtful debts is an example of... A. Consistency concept B. Materiality Concept C. Money measurement concept D. Prudence concept 3. The company has a policy of charging depreciation using straight line method and this method used for the past five years. The policy has been changed to diminishing balance. This is an example of...... A. Consistency concept B. Going concept C. Business entity concept D. Prudence 4. The company had the following assets and liabilities at the beginning of the year. Inventory K2500 Plant and machiney K3000 Cash and hand K3600 Fixtures and fixtures K2000 Loan K3670 Trade payables K3100 Trade receivables K1100 The capital at the start of business is ...... A. K5,430 B. K8,530 C. K6,330 D. K4,670 cap $5,000 profit K500 15,500 000. 5. If capital at start of business was K15,000 and at the year end the company made of profit of K500 and drawings by the owner was K4,000. The capital at year end will be... A. K15,500 B. K11,500 C. K11,000 D. K12,500