For each question, select the best of the four options to fill in the blanks.

1. The Z-score model uses --------------- businesses falling into financial distress.

A. univariate

B. regression

C. multiple discriminate

D. trend

2. -------------- is an example of a capital reserve.

A. Retained earnings

B. Share premium account

C. General reserve

D. Share capital account

3. Large businesses should provide information on any recommended dividend in the----------------which forms part of the annual report and accounts.

A. statement of financial position

B. directors' report

C. strategic report

D. notes to the accounts

4. The law states that it is illegal under normal circumstances for shareholders to withdraw that part of their claim that is represented by -------------

A. share capital

B. share capital plus capital reserves

C. share capital plus revenue reserves

D. share capital plus total reserves

5. During a period of inflation, the LIFO method of inventories valuation will lead to -------- reported profits for a period and---------- inventories values at the end of the year than the FIFO method of inventories valuation.

A. higher higher

B. higher lower

C. lower higher

D. lower lower

6. The --------------convention is designed to provide guidance concerning the recognition of expenses.

A. duality

B. historic cost

C. realisation

D. matching