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NEW QUESTION 23 A decrease in assets is most likely to be recognised in the financial report as

• A. an expense.
• B. a liability.
• C. a change in equity.
• D. revenue earned.

Answer: A   NEW QUESTION 24 Which of the following represents a principal-agent relationship? I. shareholders-auditors II. shareholders-management III. security exchange-company IV. board of directors-employees

• A. I, II and IV only
• B. I, II and III only
• C. I, II, III and IV
• D. II, III and IV only

Answer: A   NEW QUESTION 25 Which one of the following statements is not correct in respect of manual accounting systems?

• A. They are bulky to store compared to computer systems.
• B. It is easy to make corrections.
• C. Productivity in manual systems is lower than computer systems.
• D. Risk of error is greater and the quality of outputs is inferior.

Answer: B   NEW QUESTION 26 As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements? I)owners II)auditors III)directors

• A. I and II only
• B. II and III only
• C. I only
• D. III only

Answer: D   NEW QUESTION 27 ......