1. Corporations issue their shares to the investing public in the

Primary Market Secondary Market

a Yes Yes

b No Yes

c Yes No

d No No

a. option a

b. option b

c. option c

d. option d

2. Which of the following groups is not among the external users for whom financial statements are prepared?

a. Customers

b. suppliers

c. employees

d. All the above

3. Which of the following is not a potential benefit of accrual accounting, compared to cash-basis accounting?

A. timeliness

B. better refecting economic activity

C. periodicity

D. better matching of revenues and expenses.

4. The FASB issues accounting standards in the form of:

A. accounting standards updates

B. accounting research bulletins

c. financial accounting standards

d. financial technical bulletins