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1. Which of the following statements are correct in the context of accounting concepts and principles?
I)The going concern assumption requires that assets be carried at their cost values.
II)Prudence allows the creation of contingency reserves and more generous provisions.
III)Financial information is considered complete even if it excludes non-material information.
IV)Understandability does not require complex information to be excluded from financial reports.

A) I and III only
B) II and III only
C) II and IV only
D) III and IV only

2. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of

A) neutrality.
B) completeness.
C) substance over form.
D) understandability.

3. Which one of the following practices is not considered creative accounting?

A) trading in derivatives
B) aggressive earnings management
C) profit smoothing
D) window dressing

4. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?

A) tax consultants
B) financial Institutions
C) shareholders
D) directors of the company

5. The concept of transparency in corporate governance means that listed companies should disclose

A) only mandatory information by management.
B) material information that affects decisions.
C) confidential issues relating to competitors.
D) their future strategy.

問題與答案：