Determine the response that best completes the following statements or questions.

1.

The primary objective of financial reporting is to provide information.

	About a firm's management team.
	Useful to capital providers.
	Concerning the changes in financial position resulting from the income-producing efforts of the entity.
	About a firms financing and investing activities.

2.

Statements of Financial Accounting Concepts issued by the FASB

	Identify the conceptual framework within which accounting standards are developed.
	Are subject to approval of the SEC.
	Have been superseded by SFASs.
	Represent GAAP.

3.

In general, revenue is recognized when

	A contract has been signed.
	The sales price has been collected.
	A good or service has been delivered to a customer.
	A purchase order has been received.

4.

In depreciating the cost of an asset, accountants are most concerned with

	Recognizing revenue in the appropriate period.
	Conservatism.
	Recognizing expense in the appropriate period.
	Full disclosure.

5.

The primary objective of the matching principle is to

	Provide full disclosure.
	Promote comparability between financial statements of different periods.
	Record expenses in the period that related revenues are recognized.
	Provide timely information to decision makers.

6.

The separate entity assumption states that, in the absence of contrary evidence, all entities will survive indefinitely.

	False
	True