46)

Which accounting concept needs to take precedence when accounting for the cost of advertising is expected to significantly enhance the sales in future years?

a.

Matching concept

b.

Consistency concept

c.

Neutrality concept

d.

Conservatism concept

47)

What would be an advantage of having all countries adopt and follow the same accounting standards?

a.

Comparability.

b.

Lower preparation costs.

c.

Consistency.

d.

Comparability and lower preparation costs.

48)

Anticipate no profits and provide for all possible losses. This is the essence of which of the following accounting principle?

a.

Materiality Principle

b.

Historical Cost Principle

c.

Consistency Principle

d.

Conservatism Principle

49)

Identify which one of the following is NOT a reason for difference in accounting standards across the globe.

a.

Pattern and rate of population growth

b.

Nature of economic activity

c.

Stage of economic development

d.

Stability of local currency or the inflationary experience of local economy.

50)

Which one of the following best describes professional judgment?

a.

Problem-solving and the ability to apply the right technical solution despite pressure or social ideals

b.

The acquisition of knowledge through a formal educational process

c.

The ability to diagnose and solve complex, unstructured values-based problems

d.

Practical experience that ensures the accounting role can be completed in a professional manner