Question Details

When should an expenditure be recorded as an asset rather than an expense 



1.	Recognition of expense related to amortization of an intangible asset illustrates which principle of accounting?
a.	Expense recognition.
b.	Full disclosure.
c.	Revenue recognition.
d.	Historical cost.
	2.	When should an expenditure be recorded as an asset rather than an expense ?
a.	Never.
b.	Always.
c.	If the amount is material.
d.	When future benefit exits.
3.	Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's stock price?
a.	Full disclosure.
b.	Going concern.
c.	Historical cost.
d.	Matching.
	4.	Which assumption or principle requires that all information significant enough to affect a decision of reasonably informed users should be reported in the financial statements?
a.	Matching.
b.	Going concern.
c.	Historical cost.
d.	Full disclosure.

5.	The basic principles of accounting used by the International Accounting Standards Board include all of the following except :
a.	Measurement
b.	Full disclosure
c.	Revenue recognition
d.	Going concern




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