6. Whether a business is successful and thrives is determined by a. markets. b. free enterprise. c. competition. d. all of these. 7. An effective capital allocation process a. promotes productivity. b. encourages Innovation. S provides an efficient market for buying and selling securities. d all of these. 8. Which of the following is not a major challenge facing the accounting profession? a. Nonfinancial measurements. b. Timeliness. Accounting for hard assets. d. Forward-looking Information. 9. What is the objective of financial reporting? a. Provide information that is useful to management in making decisions. b. Provide information that clearly portray nonfinancial transactions. ( Provide Information about the reporting entity that is useful to creditors, present and potential equity Investors, lenders, and others. d. Provide information that excludes claims to the resources. 10. Primary users for general-purpose financial statements include a. creditors. b. employees. c. Investors. both creditors and investors. 11. When making decisions. Investors are interested in assessing a. the company's ability to generate net cash inflows. b. management's ability to protect and enhance the capital providers' investments. Both a and b. d. the company's ability to generate net income. 12. Accrual accounting is used because a. cash flows are considered less important. bit provides a better indication of ability to generate cash flows than the cash basis. c. It recognizes revenues when cash is received and expenses when cash is pald. d. none of the above. 13. Which perspective is adopted as part of the oblective of general-purpose financial reporting? a. Decision-usefulness perspective. b. Proprietary perspective. Entity perspective. d. Financial reporting perspective