1) The primary objective of financial accounting is to: A) Provide accounting information that serves external users. B) Serve the decision-making needs of internal users. C) Provide information on both the costs and benefits of looking after products and services. D) Monitor consumer needs, tastes, and price concerns. E) Know what, when, and how much product to produce. 2) Which of the following is not true regarding ethics: A) Ethics are beliefs that distinguish right from wrong. B) Good ethics are good business. C) Ethics are accepted standards of good and bad behavior. D) Ethics do not affect the operations or outcome of a company. E) Are critical in accounting. 3) The Securities and Exchange Commission (SEC) has given the task of setting GAAP to the: A) APB. B) IASB. C) AAA. D) AICPA. E) FASB. 4) If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be: A) Assets increase $4,500 and liabilities decrease $4,500. B) Assets increase $4,500 and liabilities increase $4,500. C) Equity decreases $4,500 and liabilities increase $4,500. D) Equity increases $4,500 and liabilities decrease $4,500. E) One asset increases $4,500 and another asset decreases $4,500. 5) Net Income: A) Represents the amount of assets owners put into a business. B) Represents owners' claims against assets. C) Is the excess of revenues over expenses. D) Decreases equity. E) Equals assets minus liabilities. 6) If equity is $300,000 and liabilities are $192,000, then assets equal: A) $108,000. B) $792,000. C) $192,000. D) $492,000. E) $300,00