6. Social responsibility is defined as: a. Decisions made to maximize the health and well being of children b. Engaging in a commitment to minimize waste c. A concern for the impact of our actions on society as a whole d. Ensuring the costs incurred in reporting financial statement information must not outweigh the benefits received from the value of the reported information to external users 7. The business entity principle requires that: a. All businesses must define their scope and establish a corporate vision b. Financial statement users can safely assume the state- ments reflect a business that is going to continue its operations at least 12 months into the future c. Information presented by a business must be compar- able, verifiable, timely, and understandable d. Each separate economic entity or business of the owner must keep accounting records apart from those of the owner and any company owned by the owner CHAPTER 1 Accounting in Business 8. The revenue recognition principle requires that: a. Revenue is recorded at the time it is earned b. Revenue is recorded in the currency in which the company primarily operates c. Different knowledgeable individuals would reach con- sensus that the number represented in the financial statements is reasonable d. Revenue is reported at the amount of cash it would cost to purchase the asset today 9. The three key methods to determine the dollar value to rec- ord a transaction at its current value accounting records are: a. Current cost, fair value, value in use b. Historical cost, future cost, realizable value c. Present cost, future value, present value d. Historical cost, current cost, realizable value 10. Another acceptable term for the income statement is: a. Statement of Cash Flows b. Statement of Financial Position c. Statement of Earnings d. Statement of Changes in Equity

6. Social responsibility is defined as. 2. Decisions made to maximize the health and well being of children b. Engaging in a commitment to minimize waste c. A concern for the impuct of our actions on soclety as a whole d. Ensuring the cosrs incurred in reporting financial satement information must not outweigh the benefits received from the value of the reported information to external users 7. The business entity principle requires that: a. All bustnesses must define their scope and establish a corporate vision b. Financial statement users can safely assume the statements reflect a business rhat is going to continue its operitions at least 12 months into the future c. Information presented by a business must be compar able, verifiable, timely, and understandable d. Each separate economic enticy or business of the owner must keep accounting records apart from those of the owner and any company owned by the owner 8. The revenue recognition principle tequires that: a. Revenue is recorded at the time it is earned b. Revenue is recorded in the currency in which the company primarily operates c. Different knowledgeable individuals would reach consensus that the number represented in the financial statements is reasonable d. Revenue is reported at the amount of cash it would cost to purchase the asset today 9. The three key methods to determine the dollar value to reeord a transaction at its current value accounting records are: a. Current cost, fair value, value in use b. Historical cost, future cost, realizable value c. Present cost, future value, present value d. Historical cost, current cost, realizable value 10. Another acceptable term for the income statement is: a. Statement of Cash Flows b. Statement of Financial Position c. Statement of Earmings d. Statement of Changes in Equity