Paragraph Styles SECTION.I Choose the correct answer from the following (4x1=4 Marks) 1. Which one of the following is not a feature of current cost accounting method? a) Historical values of items are not taken into account b) Current values of individual items are taken for the preparation of income statement c) In addition to adjustments for depreciation and cost of sales, this method deals with the working capital and loans raised. d) This method does not take into account price changes relevant to particular firm or industry. 2. Which one of the following is an adjustment to be made for calculating current operating profit under the current cost accounting a) Gearing adjustment b) Cost of sales adjustment c) Monetary working capital adjustment d) All of the Above. 3. Which one of the following is incorrect regarding the current cost accounting method? I. Under this method, items are adjusted as a result of the changes in the general price level. II. This method ensures real profit by ensuring the matching of current cost with current revenues. a) Statement 1 only True. b) Statement II only True. c) Statement 1 and II are True. d) Statement 1 and II are False. 4. Which one of the following is done in Current cost accounting technique? a) The British government appointed a committee b) It is shown as a Market value c) All Assets, Liabilities, Income statement is converted d) All of the above