1. Companies that are listed on a public stock exchange are required to submit their financial statements to the a. AICPA b. APB c. FASB d. SEC 2. a. What is the objective of financial reporting? Provide information that is useful to management in making decisions. b. Provide information that clearly portrays nonfinancial transactions. c. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. d. Provide information that excludes claims to the resources. a. 3. The most important criterion by which accounting information can be judged is that of decision usefulness. b. freedom from bias. timeliness d. comparability c. 4. The two fundamental qualities that make accounting information useful for decision making are a comparability and timeliness. b. materiality and neutrality. relevance and faithful representation. d. faithful representation and comparability. c. 5. The assumption that a business enterprise will not be sold or liquidated in the near future is known as the a. economic entity assumption. b. monetary unit assumption. c. conservatism assumption. d. none of these