1. Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities True False 2. The primary objective of managerial accounting is to provide general purpose financial statements to help external users analyze and interpret an organization's activities True False 3. Extemal nuditores examine financial statements to verify that they are prepared according to generally accepted accounting principles True False 4. External users include lenders, shareholders, customers, and regulators. True False 5. Regulators often have legal authority over certain activities of organizations. True False 6. Internal users include lenders, shareholders, brokers and managers. True False 7. Opportunities in accounting include auditing, consulting, market research, and tax planning. True False 8. Identifying the proper ethical path is usually casy. True False 9. The Sarbanes-Oxley Act (SOX) requires cach issuer of securities to disclose whether it has adopted a code of ethics for its senior financial officers and the contents of that code True False 10. The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity pressure, and rationalization True False II. The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls. True False 12. A partnership is a business owned by two or more people True False 13. The balance sheet shows a company's net income or loss due to carmings activities over a period of True False 14. The Financial Accounting Standards Board is the governmental agency that sets both bread and