Conservation of Assets - SS1 Accounting Past Questions and Answers - page 1
1
What is the conservation of assets?
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A
The principle that a company should use its assets carelessly
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B
The principle that a company should use its assets wisely and carefully
C
The principle that a company should use its assets in a wasteful manner
D
The principle that a company should not invest in any assets
2
Why is the conservation of assets important for a business?
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A
It helps to maximize asset value
B
It reduces costs
C
It increases productivity
D
All of the above
3
What steps can a business take to protect its assets?
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A
Implement security measures to prevent theft
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B
Regularly maintain and repair equipment and machinery
C
Have insurance policies in place to cover losses
D
All of the above
4
What is the benefit of using assets efficiently?
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A
It helps to reduce costs
B
It helps to increase productivity
C
It helps to maintain a competitive edge
D
All of the above
5
What is the purpose of the conservation of assets?
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A
To ensure the long-term sustainability of a company's operations
B
To maximize the short-term profitability of a company
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C
To encourage careless use of assets
D
To promote excessive investment in assets
6
What are some examples of steps a business can take to protect its assets?
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7
How can a business benefit from using its assets efficiently?
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