1. What is the objective of financial statements? A. to record the financial activities and non-financial activities of the business for the purpose of making decision. B. to show the value of the shares in the company. C. to help management in coordinating the task among its employees. D. to provide information about the financial position, performance and cash flows of an entity that is useful to those users in making economic decisions. 2. use the financial statements to analyse the business's strengths and weaknesses in making an investment decision whether to buy, sell or keep their investment in the business. A. Government B. Investors C. Inland revenue officers D. Management 3. What would be the correct steps in accounting to record the adjusting entry? A. Ledger > Adjusted trial balance > Adjusted financial statements. B. Journal > Ledger > Adjusted trial balance > Adjusted financial statements. C. Adjusted trial balance > Adjusted financial statements. D. None of the above. 5. The business owner paid for his family insurance expenses using the business money and recorded the transaction in the business's insurance expense. The business owner violated concept A. Business entity B. Materiality C. Going concern D. Periodicity