Select the best answer to each of the following questions: 1. In the conceptual framework project, how many financial reporting objectives were identified by the FASB?

a. One.

b. Two.

c. Three.

d. Four. 2. The two primary qualitative characteristics are: 3.

a. Predictive value and feedback value.

b. Timeliness and verifiability.

c. Comparability and neutrality.

d. Relevance and reliability. A pervasive constraint of accounting information is that: Benefits must exceed costs.

a. b. The information must be timely.

c. The information must be neutral.

d. The information must be verifiable. 4. To be reliable, information must (identify the incorrect quality):

a. Be verifiable.

b. Be timely. C.

d. Have representational faithfulness. Be neutral.

5. The basic elements of financial statements consist of:

a. Terms and their definitions.

b. The objectives of financial reporting.

c. The qualitative characteristics.

d. The new income statement format.