1.The statement concerning the key qualities of accounting information that is untrue is: Select one: a. the qualities are frequently in conflict. b. relevant information may help to predict future events or confirm past events. c. relevant information often contains a degree of subjectivity. d. All of the above

2.Which of these is not one of the ratio groups used in ratio analysis? Select one: a. Liability ratios b. Profitability ratios c. Solvency ratios d. Liquidity ratios

3.Which of the following statements relating to a budget is not true? Select one: a. It is prepared on an historical basis and it is about past performance b. It provides many of the performance targets used in responsibility accounting c. It is a management tool. d. It is a detailed plan

4.Which statement concerning budgeting is correct? Select one: a. Budgets do not add value to a business b. A budget is an essential step in managing a business efficiently c. Budgeting and performance evaluation are NOT closely related d. A budget prepared by an individual is more detailed than one used by a business.

5.The quality of accounting information that requires items that are basically the same to be treated in the same manner is: Select one: a. timeliness. b. understandability. c. relevance. d. comparability.