1. Which of the following is the most appropriate definition of accounting? (a) The information system that identifies, records, and comm organization to interested users (b) a means of collecting information (e) The interconnected network of subsystems necessary to unicates the economic events of an td electronic collection, organization, and communication of vast amounts of information 2. A business organized as a separate legal entity is a (a) corporation. (b) proprietorship. (c) government unit. (d) partnership. 3. Buying assets needed to operate a business is an example of a(n) (a) purchasing activity. (b) financing activity. (c) investing activity. (d) operating activity. 4. Cost of goods sold is a(n) (a) liability (b) financing activity. (c) asset. (d) expense. 5. Which one of the following is not a qualitative characteristic of useful accounting information? (a) relevance (b) verifiability (c) going concern (d) comparability 6. Which of the following is not an enhancing qualitative characteristic? (a) verifiability (b) faithful representation (c) comparability (d) timeliness 7. Which one of the following is a fundamental qualitative characteristic? (a) relevance (b) timeliness (c) understandability (d) comparability