20 x 1 = 20 MARKS
Colour the relevant circle for the most relevant answer to each question on the Multiple
Choice Question answer sheet provided.
The purpose of full disclosure principle is to report:
The CEO of Pure Water Ltd used the company’s money to buy a car for his wife’s personal
use. The CEO has violated the:
Williams Washing Machines Pty Ltd purchased second-hand equipment for its operation for
$25,000. The equipment’s market value was worth $35,000. How much should the equipment
be recorded at in Williams Washing Machines’ statement of financial position?
Lazy Company is currently in its third year of operation and has yet to issue financial
statements. Which accounting concept or principle has been violated by the company?