Answers and explanations please

This accounting concept justifies the usage of accruals and deferrals.

(a) going concern (c) consistency

(b) materiality (d) stable monetary unit

The type of money prices which uses such concepts as present value, discounted cash flow and value in use is known as:

(a) price in a current purchase exchange (c) price based on future exchange

(b) price in a past exchange (d) price in a current sale exchange

The recognition of the deficiencies of historical cost accounting has led to the advocacy of the recognition of the effects of inflation in the accounts. The following statements characterize the recognition of the effects of inflation except:

(a) all accounts in the financial statements are affected to a certain extent by inflationary

conditions, and the effect is more explicit in some accounts than in others

(b) restating the entire financial statements in terms of current prices is a very complicated

process and requires considerable additional work

(c) users of financial statements advocate the recognition of the effects of inflation in the

accounts because historical cost creates the impression that the business entity is more

profitable than what it really is

(d) inflation affects more drastically those items in the accounts where the rate of turnover

is quite high