Indicate whether the following statement is true or false:The recognition criteria will be met if the flow of future economic benefits is expected and if the item has a cost or value that is measurable.Select one:TrueFalse

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

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 the following statement is true or false: The objective of ‘general purpose financial statements’ involves providing not only financial information but also certain non-financial information.Select one:TrueFalse

Indicate whether the following statement is true or false: Materiality is a qualitative characteristic.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 '''''''''''''''''''''''''''''''''''''''