Conservation of Assets - SS1 Accounting Past Questions and Answers - page 1
What is the conservation of assets?
The principle that a company should use its assets carelessly
The principle that a company should use its assets wisely and carefully
The principle that a company should use its assets in a wasteful manner
The principle that a company should not invest in any assets
Why is the conservation of assets important for a business?
It helps to maximize asset value
It reduces costs
It increases productivity
All of the above
What steps can a business take to protect its assets?
Implement security measures to prevent theft
Regularly maintain and repair equipment and machinery
Have insurance policies in place to cover losses
All of the above
What is the benefit of using assets efficiently?
It helps to reduce costs
It helps to increase productivity
It helps to maintain a competitive edge
All of the above
What is the purpose of the conservation of assets?
To ensure the long-term sustainability of a company's operations
To maximize the short-term profitability of a company
To encourage careless use of assets
To promote excessive investment in assets
What are some examples of steps a business can take to protect its assets?
How can a business benefit from using its assets efficiently?