1. What is the role of the FASB? a. To regulate U.S.financial markets and accounting standard-setting bodies b. To determine auditing standards in the U.S. c. To establish accounting standards in the U.S. d. To regulate foreign companies that do business in the U.S. 2. The primary accounting standard-setting body in the United States is the a. Securities and Exchange Commission b. Internal Revenue Service. c. Financial Accounting Standards Board. d. Corporate Board of Directors 3. To be relevant what characteristic must accounting information exhibit? a. It must be capable of making a difference in a decision b. It must be compared with other companies. c. It must be verifiable. d. It must be based on the U.S. monetary unit. 4. GAAP refers to a. General Accounting and Auditing Principles b. Guidelines for American Accounting Procedures. C. General Association of Accounting Practitioners. d. Generally Accepted Accounting Principles 5. In order to be relevant, accounting information must a. be neutral b. be verifiable. c help predict future events. d. be a faithful representation. 6. Which statement describes the periodicity assumption? a. The life of a business can be divided into artificial times periods for which useful reports can be prepared b. The business will remain in operation for the foreseeable future, C. Every economic unit can be separately identified and accounted for, d. Financial reports are issued on a timely basis for decision-making. 7. Financial statements combining the operations of Macys and Dillards would violate the a. monetary unit assumption. b. economic entity assumption C. cost principle. d. full disclosure principle. 8. The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the a economic entity assumption b. going concern assumption. c. monetary unit assumption d. time period assumption 9. Which of the following is not a characteristic of reliable accounting information? a. Verifiability b. Neutrality c. Timeliness d. Represento Honal Faithfulness