Question Details

Which basic assumption is illustrated when a firm reports financial results on an annual basis 


1.	Issuance of common stock for cash affects which basic element of financial statements?
a.	Revenues.
b.	Losses.
c.	Liabilities.
d.	Equity.

	2.	The International Accounting Standards Board (IASB) defines five interrelated elements of financial statements.  Which of the following is not one of those elements?
a.	Asset.
b.	Income.
c.	Equity.
d.	All of the choices are elements defined by the IASB.

	3.	The International Accounting Standards Board (IASB) defines one of the 5 elements as follows: “the residual interest in the assets of the entity after deducting all its liabilities” Which element matches this description?
a.	Retained earnings.
b.	Income.
c.	Equity.
d.	All of the choices match this definition.

	4.	Which of the following is not a basic assumption underlying the financial accounting structure?
a.	Economic entity assumption.
b.	Going concern assumption.
c.	Periodicity assumption.
d.	Historical cost assumption.

	5.	Which basic assumption is illustrated when a firm reports financial results on an annual basis ?
a.	Economic entity assumption.
b.	Going concern assumption.
c.	Periodicity assumption.
d.	Monetary unit assumption.



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