Identify if the following statement is true or false - By separating the accounts it makes it more challenging to calculate business expenses, such as bank fees, and revenue, such as interest earned, thus making it more time consuming and costly to prepare tax returns for the business.*1 pointFALSETRUE

Identify if the following statement is true or false -  It is easier to monitor the financial performance and position of the business if it has a separate account to that of its owner.*1 pointTRUEFALSE

True or false: Comparison of the actual and budgeted expenses in the income statement can be helpful for new ventures where there are multiple products or services.

QUESTION 1Income and expense accounts are not cumulative in nature and have to be earned/incurred from scratch during each new financial year. True False1 points   QUESTION 2Income and expense accounts have a balance c/d and a balance b/d at the end of each financial year. True False1 points   QUESTION 3The statement of financial position accounts and the statement of profit or loss (nominal) accounts need to close off at the end of the financial year. True False1 points   QUESTION 4The purpose of the trading account is to calculate an entity's gross profit for the year. True False1 points   QUESTION 5The inventory deficit incurred when an entity is using the perpetual system will be closed off to the entity's profit or loss account. True False

Indicate whether the following statement is True or False.The revenue and receipts function requires certain basic functions that need to be put in place so that the entity has a functional accounting system

. Indicate whether following statements relating to the financial accounting are True or False.True/FalseA It provides information for external party '''''''''''''''''''''''''''''''''''''''B It base estimated information '''''''''''''''''''''''''''''''''''''''C It present information for an accounting period '''''''''''''''''''''''''''''''''''''''D Sri Lanka Accounting standards are not used '''''''''''''''''''''''''''''''''''''''32' State whether the following tasks can be included under management accountingTask Yes/ NoA Preparing general purpose final financial statements '''''''''''''''''''''''''''''''''''''''B Preparing overhead analysis sheets '''''''''''''''''''''''''''''''''''''''C Providing information of marginal costing '''''''''''''''''''''''''''''''''''''''D Analyzing profitability of a firm by using ratios '''''''''''''''''''''''''''''''''''''''33' State the most suitable accounting concept for followingSituation ConceptA Categorizing liabilities as current and non – current in thestatement of financial position '''''''''''''''''''''''''''''''''''''''B Recognizing payable expenses in the statement offinancial position '''''''''''''''''''''''''''''''''''''''C Recording the most lowest value form the cost and netrealizable value of the closing stock. '''''''''''''''''''''''''''''''''''''''D Considering the purchase a stapler machine as an expensein the income statement '''''''''''''''''''''''''''''''''''''''34' State whether following statements are considered as the components of the general purpose finalfinancial statements.Yes / NoA Statement of Financial position '''''''''''''''''''''''''''''''''''''''B Directors reports '''''''''''''''''''''''''''''''''''''''C Notes in the F.F.S. '''''''''''''''''''''''''''''''''''''''D Bank reconciliation statement '''''''''''''''''''''''''''''''''''''''