1. ____ Most countries require companies to follow U.S. GAAP in preparing their financial statements. 2. ____ Companies face many uncertainties when preparing their financial statements. 3. ____ A liability is defined as a future economic benefit that an organization owns or controls. 4. ____ Creation of U.S. GAAP is primarily done by the U.S. government. 5. ____ In order for investors to evaluate the financial information of a company, it is vital that the financial information be exact. 6. ____ Materiality depends on the size of the organization. 7. ____ Material misstatements made on financial statements are acceptable as long as there are only a few of them. 8. ____ An example of an uncertainty faced by companies in financial statements is a pending lawsuit. 9. ____ Only accountants need to understand the terminology of accounting. 10. ____ An employee is an example of an asset. 11. ____ A sale is usually considered revenue even if cash is not collected. 12. ____ The purchase of a building is recorded as an expense. 13. ____ A deliberate misstatement is known as fraud