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小果子 发表于 2008-4-29 15:45

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<p>Which one of the following statements is correct?<br/>A&nbsp; &nbsp;The prudence concept requires assets to be understated and liabilities to be overstated.<br/>B&nbsp;&nbsp; To comply with the law, the legal form of a transaction must always be reflected in financial statements.<br/>C&nbsp; &nbsp;If a non-current asset initially recognised at cost is revalued, the surplus must be credited in the income<br/>&nbsp;&nbsp;&nbsp;&nbsp; statement.<br/>D&nbsp;&nbsp;&nbsp;In times of rising prices, the use of historical cost accounting tends to understate assets and overstate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; profits.</p><p>D</p>

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