expenses. Type your answer here: a. b. c. d. 5. How many of these are advantages of using a subsidiary ledger and control account system? Removal of a mass of detail from the general ledger -Ease of operation by responsible staff Improved internal control 0 1 2 3 Type your answer here: 6. Select the incorrect statement concerning accounting standards. They guide the preparation of reliable financial reports. They evolve with changes in business requirements. They improve the comparability of financial reports. d. They only apply to companies. Type your answer here: a. b. c. 7. a. b. Which statement relating to reserves is not true? They represent items of equity other than share capital. They represent cash set aside to be drawn on in hard times. Retained earnings is a type of reserve account. When a non-current asset is revalued upwards a revaluation reserve is created. Type your answer here: c. d