financial statement provide information about business activities to decision makers

True or False

The primary objective for financial reportingis to provideinformation

Select one

_ regarding the cash flows of the business

_ to the federal government

_ useful for making investment decisionsand for assessingmanagementstewardship

_ about the profitability of the business

Audits conducted by external accountantsexpress an opinion

Select one

_ that givesinvestorsconfidencetheir investmentis not arisk

_ that evaluatesthe effectiveness ofmanagement

_ that taxing authorities use to ensure that the correct of amount of tax owing has beencalculated

_ onwhether or notthe financial statement fairlyreflectthe economic events thatoccurredduring the accountingperiod

Rules of professional conduct for accountants should

Select one

_ be considered a minimum standard ofperformance

_ not be seen as strict when the client request certainrequirements

_ be the same as those for lawyers andengineers

_ clearly spell out right from wrong in everysituation

Apropietorshipcan have twoowners so long as they are husband andwife

True or False

In a corporation the shareholders have liability for the actions of the corporation that extendsbeyond their investment

True or False

An organization for accounting purpose stands apart from other organization and individuals as a separate accounting entity

True or False

GAAP stands for

Select one

_ generally accepted auditing practices

_ generally accepted accounting principles

The accounting equation can be stated as asset + liabilities =ownersequity

True or False

An owner investment would increase the assets and decrease the liabilities of the firm

True or False