1.Choosing to combine the cost of paper clips with other office products in a single account for financial reporting purposes is an example of

materiality

None of the other alternatives are correct

compliance with regulatory requirements

convenience

relevance

2.The following definition pertains to which accounting principle or convention: assets are recorded and subsequently reported at their acquisition prices.

Historical cost

Business entity

Objectivity

Going concern

None of the other alternatives are correct

3.Choose the word or phrase which best completes the following sentence. Auditing is a systematic process of objectively obtaining and evaluating regarding assertions about actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to users.

management statements

criteria

evidence

None of the other alternatives are correct

opinions

4.Choose the word or phrase that best completes the following sentence. Three foundations underpinning financial reporting and transparency are the conceptual foundations, the technical foundations and

the Board of Director foundations

the audit foundations

the professional foundations

The theoretical foundations

None of the other alternatives are correct

5.The following definition pertains to which accounting principle or convention: the underlying costs of generating a revenue stream are in the same income statement as the revenue stream.

Going concern

None of the other alternatives are correct

Monetary unit

Matching

Materiality