ICAN CAP-I — Practice Quiz (Set 5)By sushil / October 6, 2026 ICAN CAP-I — Practice Quiz (Set 5) 10 questions · 15 minute time limit Start Quiz You can take this quiz as a guest. Log in first if you want it saved to your progress history. Under the accounting concept of u2018consistencyu2019, an entity is expected to: Change accounting methods every year for accuracy Apply the same accounting methods from one period to another unless justified otherwise Use different methods for different departments Follow only tax rules A u2018contra entryu2019 in accounting refers to a transaction that: Involves only credit purchases Affects both the cash account and the bank account in the cash book Is recorded twice in error Relates only to fixed assets The u2018matching conceptu2019 in accounting primarily requires that: Assets equal liabilities Expenses be recognized in the same period as the revenues they help generate Revenues be recorded only when cash is received All transactions be recorded in foreign currency A u2018suspense accountu2019 is typically used when: Final accounts are being closed permanently There is a temporary difference in the trial balance that needs investigation A company is being liquidated Dividends are declared In cost accounting, u2018fixed costu2019 is best described as a cost that: Varies directly with production volume Remains constant in total regardless of changes in activity level within a relevant range Decreases as production increases Is incurred only once The economic principle of u2018opportunity costu2019 refers to: The actual cash cost paid for a good The value of the next best alternative foregone when a choice is made The cost of production only A government-imposed tax In business communication, a u2018memorandumu2019 is typically used for: External formal contracts with clients Internal communication within an organization Filing legal lawsuits Issuing shares to the public Under company law principles taught at foundation level, a company is considered a u2018separate legal entityu2019, meaning: Shareholders are personally liable for all company debts The company can own property, sue, and be sued in its own name, distinct from its owners The company ceases to exist if one shareholder leaves Directors automatically own all company assets personally The term u2018mercantile lawu2019 broadly refers to legal principles governing: Criminal offenses only Trade, commerce, and business transactions Family and marriage matters International diplomacy Under basic microeconomic theory, u2018elasticity of demandu2019 measures: Total revenue generated by a firm The responsiveness of quantity demanded to a change in price The total cost of production Government tax revenue Submit Quiz
