1-Globalization demands a single set of high-quality international accounting standards. Some elements:

Select one:

a. Common disclosures.

b. All the above

c. Common high-quality auditing standards and practices.

d. Consistency in application and interpretation.

e. Single set of high-quality accounting standards established by a single standard-setting body.

2-The expenses relating to personal use should be treated as drawings rather than as business expenses. This is in accordance with ________________.

Select one:

a. All the above.

b. Matching concept.

c. Substance over form concept.

d. Prudence concept.

e. Separate entity concept.

3-If cash is received from a customer in the current period, but the related performance obligation is not satisfied until a future period, the related expenses of generating the revenue should not be recognized until that future period. This guideline is an application of the:

Select one:

a. revenue recognition principle.

b. matching principle.

c. cost constraint.

d. full disclosure principle.

e. None of the answers are correct

4-If the LIFO inventory method was used last period, it should be used for the current and following periods because of:

Select one:

a. timeliness.

b. verifiability.

c. comparability.

d. materiality.

e. None of the answers are correct

5-Identify the appropriate qualitative characteristic(s) being described in the statements below.

Items whose amounts are very small relative to other amounts on the financial statements may be accounted for in the most expedient manner, rather than requiring strict accounting treatment under GAAP.

Select one:

a. Comparability (consistency)

b. Materiality

c. None of the answers are correct

d. Neutrality

e. Relevance