1. The underlying assumptions of accounting include all the following except: (a) Business entity (b) Going concern (c) Matching (d) Money measurement and periodicity 2. The concept that requires that all companies use the same accounting practices and reporting practices through time is: (a) Substance over form (b) Consistency (c) Articulation (d) None of the above 3. Which of the following statements is false regarding the revenue recognition principle? (a) Revenue must be substantially earned before it is recognised (b) The accountant usually recognises revenue before the seller acquires the right to receive payment from the buyer (c) Some small companies use the cash basis of accounting (d) Under the installment basis, the gross margin recognised in a period is equal to the amount of cash received from installment sales times the gross margin percentage for the year of sale 4. Modifying conventions include all of the following except: (a) Periodicity (b) Cost-benefit (c) Materiality (d) Conservatism