Professional Documents
Culture Documents
2. The cost principle states that assets should be recorded at their original historical
cost.
C A. True
O B. False
3. Expenses are decreases in owner's equity that result from operating the
business.
C A. True
O B. False
10. Ethics are the standards of conduct by which one's actions are judged as:
O A. right or .
O B. honest or dishonest.
O C. fair or unfair.
C D. all of these options.
11. An organization that establishes a set of accounting standards that are generally
accepted and practised is the:
C A. Canadian Institute of Chartered Accountants.
O B. Business Development Corporation.
O C. Canada Customs and Revenue Agency.
O D. Provincial Securities and Exchange Commission.
12. Combining the activities of Kellogg and General Mills would violate the:
O A. cost principle.
C B. economic entity assumption.
O C. monetary unit assumption.
O D. ethics principle.