financial accounting theory

11- The capital maintenance perspective that considers the changes in the real value of the currency unit is:

A- Financial capital maintenance

B- Purchasing power maintenance

C- Physical capital maintenance

D- None of the above

12- The accounting alternative method that adjusts the historical cost accounting numbers, is called:

A-Current purchasing power accounting

B- General price level accounting

C- Current cost accounting

D- A and B

13- Which of the following is monetary asset:

A- Cash

B- Inventory

C- Buildings

D- Lands

14- If the company has more monetary assets than monetary liabilities, then, in the periods of inflation, the company will have:

A- Gain

B- Loss

C- No gain, no loss

D- A and B

15- The accounting method that differentiates between trading profits and holding gains, is:

A-Current purchasing power accounting

B- General price level accounting

C- Current cost accounting

D- Historical cost accounting

16- Limitations of historical cost accounting enhance the need for:

A- Accounting for changing prices

B- International accounting

C- Accounting for income tax

D- The conceptual framework of accounting