6) Although a wide variety of users rely on financial reporting, this group has been identified as the main users of financial reporting: a) managers b) capital providers (investors and creditors) c) governments d) auditors 7) Financial information must be a faithful representation of the economic reality of the events. Faithful representation is achieved when the information is, a) complete b) neutral c) free from material error d) all of the above 8) The basic expense recognition criteria states that expenses should be recognized when; a) cash is paid b) there is a decrease in an asset or increase in a liability, excluding transactions with owners c) there is an increase in an asset of decrease in a liability, excluding transactions with owners d) all of the above 9) Which of the following is a disadvantage of using debt financing compared to equity financing? a) the interest on the debt must be paid b) shareholder control is not affected c) income tax savings result d) earnings per share and return on equity may be higher 10) The amount that the issuing company must pay at the maturity date of bonds is called; a) face value b) par value c) maturity value d) all of the above