1) [True or False] Financial statements are the principal means through which financial information is communicated to those outside an enterprise.

2) [True or False] One weakness of accrual accounting is that it does not provide a good indication of the enterprise's present and continuing ability to generate favorable cash flows.

3) [True or False] The International Accounting Standards Board issues International Accounting Standards.

4) [True or False] The two major standard-setting organizations in the world are the International Accounting Standards Board (IASB) and International Organization of Securities Commission (IOSCO)

5) [True or False] IFRS is considered more comprehensive than U.S. GAAP and the standards contain more implementation guidance than U.S. GAAP.

6) [True or False] The International Accounting Standards Board (IASB) follows specific steps in developing International Financial Reporting Standards (IFRS); the first step in the process is holding a public hearing.

7) [True or False] Accounting standards are now less likely to require the recording or disclosure of fair value information due to its inherent subjectivity.

8) What would be an advantage of having all countries adopt and follow the same accounting standards?

Consistency

Comparability

Lower preparation costs

Comparability and lower preparation costs