Question Details

Which basic assumption may not be followed when a firm in bankruptcy reports financial results 



1.	Which basic assumption may not be followed when a firm in bankruptcy reports financial results ?
a.	Economic entity assumption.
b.	Going concern assumption.
c.	Periodicity assumption.
d.	Monetary unit assumption.

	2.	Which accounting assumption or principle is being violated if a company provides financial reports in connection with a new product introduction?
a.	Economic entity.
b.	Periodicity.
c.	Revenue recognition.
d.	Full disclosure.

	3.	Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?
a.	Monetary unit assumption.
b.	Periodicity assumption.
c.	Going-concern assumption.
d.	Economic entity assumption.

	4.	During the lifetime of an entity accountants produce financial statements at artificial points in time in accordance with the concept of
		Objectivity	Periodicity
	a.	No	No
	b.	Yes	No
	c.	No	Yes
	d.	Yes	Yes

	5.	Under current IFRS, inflation is ignored in accounting due to the
a.	economic entity assumption.
b.	going concern assumption.
c.	monetary unit assumption.
d.	periodicity assumption.





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