1- Financial accounting is primarily concerned with the recording and reporting of economic data and activities for an entity for use by company management. t/f

2- Prospective owners of a business wishing to form a corporation must formally apply to the federal government for recognition as a legal corporate entity. t/f

3- The only way for stockholders to earn a return from their stock investment is to rely on the corporations distribution of dividends. t/f

4- Regan Appliance Repair purchased plumbing supplies on account at Lowe's Depot. Three days later, Regan returned the supplies to Lowes Depot. Which of the following entries for Regan Appliance records this return transaction?

A- Cash, debit; Plumbing Supplies, credit

B- Plumbing Supplies, debit; Accounts Receivable, credit

C- Plumbing Supplies, debit; Accounts Payable, credit

D- Accounts Payable, debit; Plumbing Supplies, credit

5- Financial information is not fairly presented if it contains:

A- Assumptions

B- Contingent Liabilities

C- Estimates

D- Intangible assets

E- None of the responses presented are correct

6- Vistas Wind Systems makes salary payments to employees at the end of each month. At the end of May 2021, the company paid $5,000 towards salary costs. Of that $5,000, $2,000 was paid for employee hours worked during April & May 2021, while $3,000 was paid in advance for employee hours worked during June August 2021. Which of the following statements is true on May 31, 2021?

A- $5,000 will be reported as an expense and an asset

B- $3,000 will be reported as an expense and $2,000 will be reported as an asset

C- $2,000 will be reported as an expense and $3,000 will be reported a liability

D- None of the responses provided are true