Single choice 14) Which of the following are accounting concepts? 1. Prudence 2. Consistency 3. Going concern O 1 only 1 and 2 only 0 1 and 3 only O 1, 2 and 3 Single choice 15) If an entity adopts best practice for negative external goodwill and research costs what is the likely impact on the current year reported profits? Reported profits will be unaltered O Reported profits will increase Reported profits will decrease This cannot be determined as negative goodwill increases profits but research costs are expensed thereby reducing profits Single choice 16) When drafting financial covenants which of the following would not be an example of event risk? O Merger or acquisition Corporate restructuring Decrease in interest cover Expansion through acquisition