1. Which of the following best describes accounting? A. Is used only for filling out tax returns and for financial statements for various type of govenmental reporting requirements B. Is an information system that provides reports to users regarding economic activities and condition of a business C. Records economic data but does not communicate the data to users according to any specific rules. D. Is of no use by individual outside of the business 2. All of the following are general purpose financial statements except for A Retained earnings statement B. Cash budget C. Balance Sheet D. Income Statement 3.An entity that is organized according to state or federal statues and in which ownership is divided into shares of stock isa A Proprietorship B. Corporation C. Government unit D. Partnership 4 Which of the following is not true of accounting principles? A. A new accounting principle can be adopted with stockholders approval B. Following GAAP allows accounting information users to compare one company to another C. Financial accountants follow generally accepted accounting principles (GAAP) D. The Financial Accounting Standard Board (FASB) has primary responsibility for developing accounting principles 5. The accounting equation may be expressed as A. Assets Revenues-Expenses B. Assets + Liabilities Stockholders Equity C. Assets-Equities-Liabilities D. Assets Liability+ Stockholders' Equity 6. Debiting the cash account will increase the account A. True B. False