1. Which of the following is an internal user of a company's financial information?

a)union

b)company treasurer

c)bank lending to the company

2.

Which of the following is not considered an ethical issue in accounting?

a) Earnings manipulation

b) Industry practices

c) Accelerated revenue recognition

d) Biased financial statement presentation

3. Qualitative Characteristics

The following is a list of qualitative characteristics of useful accounting information identified in FASB's and IASB's Statement of Financial Accounting Concepts No. 8 and statements describing the qualities.

A. Comparability

B. Decision usefulness

C. Relevance

D. Faithful representation

E. Predictive value

F. Confirmatory value

G. Verifiability

H. Neutrality

I. Free from error

J. Consistency

K. Materiality

L. Timeliness

M. Understandability

N. Completeness

Required:

Select the appropriate letter identifying each quality on the statement describing the quality.

1.	Different knowledgeable and independent observers can reach consensus that a particular representation is faithful.
2.	Making information available to decision makers before it loses its capacity to influence decisions.
3.	Capacity to make a difference in a decision, enabling users to predict future outcomes and/or confirm prior expectations.
4.	Overall objective of financial information.
5.	Absence of bias intended to influence financial statement users' behavior in a particular direction.
6.	Presented as accurately as possible, using a process that reflects the best available inputs.
7.	Helps decision makers form expectations about the future.
8.	Full disclosure of all the information necessary to understand the information being reported.
9.	Enables users to identify and explain similarities and differences between two or more sets of economic facts.
10.	The nature and magnitude of an omission or misstatement that would influence the judgment of reasonable users of that information.
11.	Accounting methods and procedures applied in the same manner from period to period.
12.	Helps decision makers confirm or correct prior predictions or expectations.
13.	When the words and amounts accurately depict the economic substance of what they purport to depict.
14.	Comprehensible to users.

d)shareholder in the company