1. Accountants may report an economic event in more than one way.

	1) True
	2) False

2. Net income over a sufficiently long time period equals cash inflows minus cash outflows.

	1) True
	2) False

Question 3

Accountants need to be right because some accounting errors are permanent.

	1) True
	2) False

Question 4

Independence between the auditor and a client in an audit engagement can be obtained if there are no family or related party relationships that impair that independence.

	1) True
	2) False

Question 5

Accountants are members of a profession. As such they have a duty to serve the public and adhere to ethical standards. Because the ethical standards are codified by the AICPA, there is little judgment involved in apply the ethical standards to daily accounting practice.

	1) True
	2) False