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1.Which of the following concepts distinguishes a business from the owner? (a)Entity concept (b)Going concern concept (c)Accrual concept (d)Cost concept 2.The caption "anticipate no profit but provide for all possible losses" describes which of the following conventions? (a)Full disclosure (b)Materiality (c)Prudence (d)Entity 3.The cost of an asset is systematically reduced during its life span by a process often referred to as (a)Depreciation (b)Amortisation (c)Appreciation (d)Accretion 4.Which of the following is an introductory segment of accounting? (a)Ledger (b)Trial balance (c)Book keeping (d)Suspense account 5.Which of the following concepts explains the occurrence of losses not necessarily when cash is received or paid? (a)Entity concept (b)Going concern concept (c)Accrual concept (d)Cost concept 6.Given assets as #100,000 and liabilities as #40,000; determine the owners capital. (a)#140,000 (b)#100,000 (c)#60,000 (d)#40,000
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