1.The following is NOT a major component of the financial statements: a.auditors opinion b.annual report c.explanatory notes d.balance sheet

3.Interested parties receive information about a companys past performance from: a.CEOs b.the SEC c.financial reporting d.financial news

4.The overall objective of financial reporting is to provide information a.that is useful for decision making. b.about an enterprise's assets, liabilities, and owners' equity. c.about an enterprise's financial performance during a period. d.that allows owners to assess management's performance.

5.Which of the following is NOT normally an objective of financial reporting? a.To provide information about an entity's assets and claims against those assets b.To provide information that is useful in assessing an entity's sources and uses of cash c.To provide information that is useful in lending and investing decisions d.To provide information about an entity's liquidation value

6.__________ accounting focuses on the development and communication of financial information for external users. a.management. b.forensic c.audit d.financial

7.The area of accounting that emphasizes developing accounting information for use within a company is known as __________ accounting. a.management b.forensic c.audit d.financial

8.The responsibility to review the work of the accountants and issue opinions as to the fairness of the financial statements rests with a.the external auditor. b.the board of directors. c.the internal auditors. d.management.

9.As independent (or external) auditors, CPAs are primarily responsible for a.preparing financial statements in conformity with GAAP. b.certifying the accuracy of financial statements. c.expressing an opinion as to the fairness of financial statements. d.filing financial statements with the SEC.

10.Which of the following is an internal user of a company's financial information? a.Board of directors b.Stockholders in the company c.Holders of the company's bonds d.Creditors with long-term contracts with the company