Determine the response that best completes the following statements or questions. 1. The primary objective of financial reporting is to provide information.

Concerning the changes in financial position resulting from the income-producing efforts of the entity.

About a firms financing and investing activities.

About a firm's management team.

Useful to capital providers.

2. Statements of Financial Accounting Concepts issued by the FASB

Have been superseded by SFASs.

Are subject to approval of the SEC.

Represent GAAP.

Identify the conceptual framework within which accounting standards are developed.

3. In general, revenue is recognized when

A contract has been signed.

A good or service has been delivered to a customer.

The sales price has been collected.

A purchase order has been received.

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

Recognizing expense in the appropriate period.

Full disclosure.

Recognizing revenue in the appropriate period.

Conservatism.

5. The primary objective of the matching principle is to

Provide full disclosure.

Record expenses in the period that related revenues are recognized.

Promote comparability between financial statements of different periods.

Provide timely information to decision makers.

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

True

False