Business entity, historic cost, going concern, periodicity, disclosure, recognition and matching are all examples of * O a) accounting concepts b) relevance in financial statements c) reliability in financial statements O d) desirable characteristics of financial statements none of the above The objectives of financial statements include: * a) to measure the efficiency of the organization b) to demonstrate compliance with environmental protection laws c) to assist investors and creditors in investing and lending decisions d) to prevent managerial fraud e) none of the above Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's operations, $3 million is spent on assets and $4 million is borrowed from the Bank. By the end of the first month they have also bought $20 million of goods for resale on credit and made sales of $25 million on credit. There is no inventory left. Ignore all other transactions and expenses. The accounting equation at that point in time is * O a) assets: $34 million; liabilities: $14 million; equity: $20 million O b) assets: $9 million; liabilities: $14 million; equity: $10 million O c) assets: $19 million; liabilities: $4 million; equity: $10 million d) assets: $34 million; liabilities: $24 million; equity: $10 million O e) none of the above Tom&Dick sells computer software. All credit transactions are done 3p through credit cards, so there is a 100% probability of receiving the money, but there is a wait of up to 10 days while the transaction is being processed. When Tom&Dick prepares financial statements at the end of its first business year, it should * a) exclude accounts receivable, because customers may not pay b) include accounts receivable as an asset because of the matching principle Oc) exclude accounts receivable as the amount is variable with interest rates O d) include accounts receivable as an asset because of the cost principle e) none of the above