1.By foreseeable future we mean

• A. At least next 12 month
• B. at least 24 months
• C. Next 6 months
• D. next month

2.Who is responsible for establishing a private companys internal control?

• A. Senior management
• B. Auditors
• C. Employees
• D. Audit Committee

3.Financial Statement are prepared on the basis of.

• A. Management
• B. Accruals basis
• C. Board of directors
• D. Supervisors.

4.Companies may deliberately understate accounts payable to overstate financial performance

• Select one
• True
• False

5.The objective of verifications of assets is.

• A. Capitalisation of assets.
• B. Debtors circularisation
• C. Physical inspection of assets
• D. Bank reconciliation.

6.An entity is considered to be in business/ operation for indefinite period. This is called.

• A. Substance over form
• B. Going concern
• C. Accrual principle
• D. Entity concept.