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- 30. Statement 1 - Recording is sorting of similar and interrelated accounts Statement 2- Management Advisory services excludes quality control since these are task designated only to production managers (1 Point) True: True True False False: False False; True m 31. The information provided by the financial accounting pertains to * (1 Point) Individual business rather than the industry and economy as a whole The economy as a whole rather than individual businesses Business industries rather than individual enterprises Individual business entities, industries, and economy as a whole 32. Statement 1 - The going concern assumption is the foundation of the cost principle Statement 2 - Understandability is an enhancing qualitative characteristic in which financial statements users are assumed to have no reasonable knowledge of basic business, accounting, and financial matters * 4. (1 Point) True True True False False: False w False: True 33. Cash Receipts from royalties are (1 Point) Presented under operating cash inflow under direct method Deducted from the net income under indirect method Added to net income under direct method Included in the cash flows as addition to income under indirect method 34. Statement 1 - Investing activities typically affects non-current assets Statement 2 - Dividends paid may be alternatively presented as investing activity in (1 Point) * True: True True: False False; False False; True