1. Accrual accounting is used because A. cash flows are considered less important. B. it provides a better indication of a company's ability to generate cash flows than the cash basis. C. it recognizes revenues when cash is received and expenses when cash is paid. D. it provides past ability to generate negative cash flows. 2. Companies that are listed on a stock exchange are required to submit their financial statements to the A. AICPA. B. SEC. C. APB D. FASB 3. The purpose of the Emerging Issues Task Force is to A. provide implementation guidance within the Codification framework to reduce diversity in practice on a timely basis. B. do research on issues that relate to long-term accounting problems. C. develop a conceptual framework as a frame of reference for the solution of future problems. D. lobby the FASB on issues that affect a particular industry