List  I List II (a) Cash Equivalents (i) Efficiency of managing an asset (b) Average Collection Period (ii) Controlling Government Expenditure (c) Zero Based Budgeting (iii) Liquid Securities (d) Responsibility Centre (iv) Residual Income

(i) The greater a firms degree of operating leverage, the more its EBIT will vary with respect to fluctuations in sales. (ii) The greater a firms degree of operating leverage, the less its EBIT will vary with fluctuations in sales.  

(i) Dividends can be paid only there are profits (ii) Dividends can be paid when there are losses.  

(i) Trade Creditors               (ii) Bank Overdraft                     (iii) Bills Payable (iv) Outstanding Expenses  (v) Redeemable debentures  

List  I List II (a) Merchandise Inventory (i) Prevents arbitrary changes from one accounting or measurement approach from one period to another (b) Comparability Quality (ii) Inventory of a retailer of wholesaler (c) Net Realisable Value (ii) Item acquired by purchase, growth or extraction of natural sources for further processing (d) Raw Materials Inventory (iv) […]

List  I List II (a) Going Concern Concept (i) The same accounting method used by a firm from one period to another (b) Consistency (ii) Relates to the relative size or importance of an item or event (c) Cost Principle (ii) An inappropriate assumption for a firm undergoing bankruptcy (d) Materiality (iv) The normal basis […]