13. The statement of cash flows allows management to assess: a. efficiency in earning profit. b. efficiency in controlling expenses. c. efficiency in managing cash flows. d. efficiency in managing industrial relations.

14. In relation to the recognition and realization of income, which statement is correct? a. Recognition of income means including it in the income statement as part of the profit calculation. b. Income from a credit sale is normally recognized in the Income Statement when the cash is received. c. The realization convention has replaced the income recognition criteria contained in the Conceptual Framework. d. All of the statements are correct.

18. How is insurance paid in advance classified in the Balance Sheet? a. current asset. b. non-current asset. c. current liability. d. non-current liability.