1. From a financial accounting perspective, which of the following make the capital allocation process more efficient? A. Increased earnings quantity B. Increased informational risk C. Increased earnings quality D. Ability to generate cash inflows 2. Which of the following best describes the concept of decision-useful information? A. Information allowing users to evaluate the amount, timing, and certainty of future cash flows B. Information allowing investors and creditors to assess whether, and how much, to invest or lend C. Entity specific accounting standards D. Choices A and B 3. Why are capital market participants better off with universal accounting standards? A. Financial reporting comparability is degraded with universal standards B. Firms may use the reporting standards that best highlight their financial strengths C. Universal standards increase uncertainty and information risk D. Financial reporting comparability is enhanced with universal standards