1. If the goal of accounting and financial reporting is to help stakeholders understand an organizations ability to achieve its mission, then

a. cash accounting is better than accrual accounting

b. cash accounting or accrual accounting can be used

c. accrual accounting is better than cash accounting

d. neither cash accounting nor accrual accounting should be used

2. One of accountings central concepts is that the fundamental equation

a.must never balance

b.must always balance

c.must equal the balance sheet

d.B & C

e.A, B, & C

3. What is depreciation?

a.An accounting technique used to lower the cost value of a finite-life or intangible asset incrementally through scheduled charges to income

b.A reduction in the value of an asset with the passage of time, due in particular to wear and tear

c.Revenue that has not been earned and represents products or services that are owed to a customer

d.A & B

e.A, B, & C

4. What is amortization?

a.An accounting technique used to lower the cost value of a finite-life or intangible asset incrementally through scheduled charges to income

b.A reduction in the value of an asset with the passage of time, due in particular to wear and tear

c.Revenue that has not been earned and represents products or services that are owed to a customer

d.A & B

e.A, B, & C