1. Which of the following statement is not true about accrual accounting:

Select one:

a. It is more sophisticated system of accounting than cash accounting.

b. It is not adopted by Australian Accounting Standards.

c. It provides a more complete portrayal of financial performance and positions of an entity.

d. It is one of the fundamental assumptions of financial reporting.

2. Accounting policies emanate from inside the firm. Which of the following is not an accounting policy?

Select one:

a. An Allowance for Doubtful Debts to be set up and up-dated rather than using the direct write-off method for bad debts.

b. Plant and machinery to be accounted for on the cost model.

c. The allowance for doubtful debts accounted as the 1% of credit sales.

d. Land and buildings to be accounted for at Fair Value.

3. Barriers to entry are the obstacles or hindrances that make it difficult for new companies to enter a given market. Which of the following factor affecting the barriers to entry into a new market?

Select one:

a. Fringe benefits.

b. All of the given answers are correct.

c. Access to channels of distribution and relationships with suppliers and customers.

d. Less government rules and regulations.