Indicate whether the following statement is true or false:Income and expenses are elements that will arise if there has been a change (increase/ decrease) in the entity’s assets, liabilities or equity.Select one:TrueFalse

Which of the following statements regarding equity is not true?It is defined independently of assets and liabilities.It can be increased by additional contributions by the owners.It is increased by profit.It includes the retained earnings of the entity.

Indicate whether the following statement is true or false:An expense that has a causal nexus (direct link) to an item of income must be recognised in the same period as that income and is referred to as the matching concept.Select one:TrueFalse

. 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 '''''''''''''''''''''''''''''''''''''''

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.

True/False? Contra Assets are reported on the Balance Sheet as positive amounts that increase total assets.Group of answer choicesTrueFalse