1. The primary objective of financial reporting is to provide information. About a firms management team Useful to capital providers Concerning the changes in financial position resulting from he income-producing efforts of the entity About a firms financial and investing activities

2. Statements of Financial Accounting Concepts issued by the FASB Identify the conceptual framework within which accounting standards are developed. Have been superseded by SFASs. Represent GAAP. Are subject to approval of the SEC.

3. In general, revenue is recognized when The sales price has been collected A purchase order has been received A contract has been signed A good or service has been delivered to a customer.

4. In depreciating the cost of an asset, accountants are most concerned with Recognizing revenue in the appropriate period. Recognizing expense in the appropriate period. Full disclosure Conservatism

5. The primary objective of the matching principle is to Promote comparability between financial statements of different periods. Provide full disclosure. Record expenses in the period that related revenues are recognized. Provide timely information to decision makers

6. The separate entity assumption states that, in the absence of contrary evidence, all entities will survive indefinitely False True