6.Which statement concerned with establishing the costs and benefits of accounting information is true? Select one: a. It is usually easier to establish the benefits than the costs. b. The costs and benefits should be ignored when deciding on what accounting information should be produced. c. It is normally easy to establish both the costs and the benefits. d. Both the costs and benefits are normally difficult to assess.

7.Four key qualities of accounting information are: Select one: a. identification, analysis, reliability, and timeliness. b. understandability, identification, analysis, and relevance. c. relevance, reliability, comparability, and understandability. d. control, planning, analysis, and comparability.

8.The profit margin ratio measures: Select one: a. the difference between the purchase price and the selling price of inventory b. return to shareholders c. the proportion of each sales dollar that represents profit. d. the rate of return on total assets

9.Inventory is defined as goods held for resale in the ordinary course of business. Which of the following would not be included in inventory for any type of business? Select one: a. Land held for resale b. Work in process c. Cash at bank d. Computers

10.The test to determine if an item of accounting information is worthwhile collecting is the: Select one: a. worthwhile test. b. cost/benefit test. c. validation test. d. cost test.