he primary objective of financial reporting is to provide information:

multiple choice $1$

useful to capital providers.

about a firm's management team.

about a firm's financing and investing activities.

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

Statements of Financial Accounting Concepts issued by the FASB:

multiple choice $2$

have been superseded by SFASs.

represent GAAP.

are subject to approval of the SEC.

identify the conceptual framework within which accounting standards are developed.

In general, revenue is recognized when:

multiple choice $3$

the sales price has been collected.

a contract has been signed.

a good or service has been delivered to a customer.

a purchase order has been received.

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

multiple choice $4$

conservatism.

recognizing expense in the appropriate period.

recognizing revenue in the appropriate period.

full disclosure.

The primary objective of expense recognition is to:

multiple choice $5$

promote comparability between financial statements of different periods.

record expenses in the period that related revenues are recognized.

provide full disclosure.

provide timely information to decision makers.

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

multiple choice $6$

False

True